CFA vs CFQ

The full form of CFA is Chartered Financial Analyst, and an aspirant can pursue this course only after they are done with their graduation. It is organized by the U.S.-based CFA Institute, whereas CFQ is the short form used for Corporate Finance Qualification, and ICAEW organizes this course.

There has been an increasing demand for qualified and credentialed professionals with the right capabilities for any specialized job in a competitive global arena in a fast-paced financial industry. As a result, several financial certification programs and designations have been offered by prestigious institutions worldwide. In this article, we will discuss CFA, one of the most reputed financial credentials, and CFQ, the highest level designation awarded in the specialized field of corporate finance. You should use the information provided to make an informed choice of credential-based on individual needs, eligibility, and preferences.

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LLet’s understand the difference between these two streams with the help of this CFA vs. CFQ Infographics:

• CFA (Chartered Financial Analyst) is the 'gold standard of investment management and financial analysis in terms of global credentials.
• It is a designation in a class of its own, awarded by CFA Institute, U.S., one of the most reputed organizations dedicated to knowledge dissemination in financial analysis and promoting global professional and ethical standards in the field. CFA is pursued by finance professionals aiming to specialize in portfolio management, financial advisory, and financial modeling, among other areas of professional interest.
• One of the most challenging financial credentials has one of the lowest passing rates, which shows the kind of dedicated effort required to earn the credentials.
• Do have a look at more details on the CFA Exam guide.

• CFQ (Corporate Finance Qualification) is a specialist qualification awarded by ICAEW (Institute of Chartered Accountants in England and Wales) to recognize the skills and expertise of corporate financiers.
• Two routes are available to acquire this special designation - study and experience. Essentially, CFQ is an experience-oriented qualification that requires a certain level of experience and expertise to earn the designation, in which case one need not sit for any exam.
• However, in the absence of the requisite experience, one can opt for a study route. Those who opt for the study route must have completed a Diploma in Corporate Finance to apply for CFQ.

CFA exam:

To qualify for CFA, a candidate should have a Bachelor's Degree (or they should be in the final year of a Bachelor's Degree) or four years of professional work experience or four years of higher education and professional work experience taken together.

CFQ exam:

• To qualify for CFQ through the study route, three programs are available depending on the level of experience of any candidate.
• Entry-level candidates can opt for a Certificate in Corporate Finance with no entry requirements to start their journey to CFQ.
• Those who have completed a Certificate in Corporate Finance or ICAEW Chartered Accountants can enroll for Diploma in Corporate Finance. To be eligible to apply for CFQ, candidates who have chosen the study route must have completed the Diploma in Corporate Finance and are currently working in a relevant position.
• They should also demonstrate three years of corporate finance experience with a minimum of three corporate finance transactions.
• Alternatively, candidates applying for Corporate Finance Qualification (CFQ) directly via experience route should have a minimum of 5 years of professional experience in a corporate finance position or relevant role with at least six demonstrable transactions in a lead advisory role.
• They also need to provide three peer references to validate their experience and expertise.

• It is a complex and advanced multi-tier financial certification program designed to help finance professionals acquire specialized knowledge areas, including asset management, financial analysis, financial modeling, portfolio management, and other research-oriented regions of finance.
• Even non-finance professionals stand to gain substantially by completing one or more levels of CFA. In contrast, experienced financial professionals would further their career prospects a great deal by earning CFA Charter.
• It enhances their value in the eyes of prospective employers and expands their area of expertise in finance, along with inspiring confidence in their professional capabilities.

• Earning this specialist designation brings the highest level of validation for corporate financiers, thus effectively recognizing them as leading experts in the complex field of corporate finance with the desired level of experience and expertise.
• It is primarily an experience-oriented designation, which is another reason for qualified and experienced corporate finance professionals to apply for CFQ. They become eligible to use CFQ designatory letters to earn the designation.
• Naturally, this helps further their career prospects substantially. In addition, it would become that much easier to inspire trust in some of the leading global employers with this highly acclaimed designation to their credit.

CFA and CFQ represent two highly acknowledged credentials in finance, but by no means can they be considered to be in the same category. CFA is a designation distinguished by its scope regarding the nature of professional capabilities it might help acquire. It is not a specialized designation but can help experienced professionals gain necessary expertise in several technical areas of finance, including equity research, financial analysis, and portfolio management. On the other hand, CFQ as a designation is limited in its scope to corporate finance and more of an experience-oriented appointment, which does not require one to sit for any exams to earn the Corporate Finance Qualification. Those looking to specialize in corporate finance only need to apply for CFQ. CFA offers a broader scope in terms of specialization but with little to no direct relevance in the field of corporate finance.

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