Passing Your CFA & CSC

By Jeff Fritz

The finance industry is competitive, and for a fresh-faced finance student hoping to enter into that fray, attaining your CFA and CSC designations may be your most valuable keys to both achieving industry respect and opening the right doors for your climbing the corporate ladder.  But as with all worthwhile things in life, attaining these designations is horrendously challenging, and only a special few will have the commitment necessary to claim them.  In this section of the NFSA Arbitrage, we’ve assembled two such students.  Together they will explain the strategies they used to prepare for and perform successfully in the weighty exams of these two designations.

Can you give us a brief background of yourself?

Muz (CFA): My name is Muz Parkhani and I have graduated from York University. I completed my Bachelor of Administrative Studies and specialized in Finance.  I passed my Level 1 CFA in June 2008 and scored over 70% in all ten areas and am a candidate for the Level 2 exam (June 2009).  My short-term goal is to land a job in a rotational program.  This would help me learn more about the business and gain valuable experience. In the long run though, I hope to start my own independent investment management firm.

Aziz (CSC): My name is Aziz Samali, and I attained an Honours Commerce at McMaster University, specializing in Accounting. I am currently working towards my CA designation while working at EY.

How long did you prepare for exams?

Muz (CFA): 6 weeks. (That was only possible because of the finance courses I took in my final year at York)

Aziz (CSC): Three to four weeks for each exam.

What supplementary source did you find most helpful in writing your exam?

Muz (CFA): The best source to prepare for the exam is the official curriculum. The key is to focus only on the LOS and therefore a candidate should be able to identify and master the examinable concepts.

Aziz (CSC): None

What courses did you find most helpful in preparation for your exams?

Muz (CFA): I took most of the CFA prep courses offered at York. As we all know, CFA exams test your knowledge in ten areas. Hence, I would say all the courses I took helped me excel in the ten areas. The following is the list of courses I took in my final year: (1) Personal Investment Management, (2) Advance Portfolio Management, (3) Fixed Income, (4) Derivatives Securities, (5) Security Valuation, (6) Financial Statement Analysis, (7) Advance Corporate Finance, and (8) Professional Investment Management.

Aziz (CSC): Financial Times Newspaper

What would you recommend that students focus on extensively?

Muz (CFA): The entire curriculum I would say.  There is not one area or LOS a candidate should ignore.  They do test you on almost the entire curriculum.

Aziz (CSC): The books and questions they provide. Make sure to practice cause there is so much you can remember theory wise.

Did you work at the same time while studying for the exam?  If so, did the firm you were with assist you in any way?

Muz (CFA): Yes, I was working full time (like I did all throughout my under graduation program). They did allow me two weeks off from work before the exam.

Aziz (CSC): I was in school taking full course load while working part time, so I was able to book some time off to do the test.

What did you do to diffuse the tension/stress that you may have experienced while studying/writing the exam?
Muz (CFA): I avoided talking to a lot of other candidates especially a few weeks before the exam.  I knew what I had to do and just stuck to my study plan.  The last thing one can do is worry about things that are beyond my control.

Aziz (CSC): It helped me most to focus on your goal of passing.

What is the pace of the exam?  Do you need to be quick or can you take your time on certain questions?

Muz (CFA): Level 1 has 240 questions that are broken down in two sessions.  There are 120 questions in the morning session and 120 in the afternoon.  Like I said earlier, a candidate really needs to know it all as the exam tests you on almost every LOS.  I would say you need to pace yourself during the exam. Doing a few MOC exams before the big day definitely helps.

Aziz (CSC): It’s fairly reasonable if you stay confident. There are going to be questions that you won’t know the answers to, so circle something and move on.

What were the questions like in your exams (theoretical or practical, or a combination)?

Muz (CFA): Most of the questions on the exam were qualitative (only a few required calculations).  The difference here is the only way a candidate will be able answer these qualitative questions (which actually indirectly test your analytical and computation ability) is if he/she understands the concepts/quantitative parts well.
Aziz(CSC): Combination of both.

What strategies did you use on a MC question where all the answers seem reasonable?
Muz (CFA): I learned this strategy from one of my professors and it works! You never look at the answer choices till you finish solving the question. Because when you do, you get influenced by the choices.

Aziz (CSC): Circle C.

How was your experience on writing the exam?

Muz (CFA): It was amazing and I can never forget that moment.  It was the first time I was writing a common exam in a single room with not just hundreds but a few thousand candidates, who all have the same goal.

Aziz (CSC): It was good.  I learned a few things, but at the end of the day it was just to get the certification.  I think all these courses are a formality.  The real learning happens at the job.

What did you find most surprising on the exam?

Muz (CFA): Nothing!  I knew the exam will be challenging and therefore I prepared accordingly.  A candidate should know not only the material but also the structure of the exam (like the weights, the order of the questions, etc, as I think it makes a big difference). My goal was to take uncertainty out of the equation.

Aziz (CSC): I don’t remember to be frank, so probably not much.

Why do you think most students lack the most when it comes to preparing for their designations?

Muz (CFA): In my personal opinion, a lot of students lack the discipline, a study plan and the endurance.  One has to understand, the exam is 6 hours long.  Therefore, one should be able to maintain the same level of intensity and concentration to do well on the exam.  A lot of candidates I know, who knew the content well just could not focus for the second half of the exam. A lot of them said, they were tired and they could not focus even if they wanted to.

Aziz (CSC): They listen to other people.  If you want something just go for it, everything else is in the details.

What would be the one piece of advice you’d give for a finance student considering going after a designation such as yours?
Muz (CFA): Take the exam only if you are passionate about the investment industry.  If you are, preparing for the exam will actually be fun and you will learn a lot.  Basically, you should want to study and not force yourself to do so
Aziz (CSC): Just do it, keep it simple and stay committed.  Don’t listen to people because everyone will have a different experience and lot of people like to talk.