DEFINITION of 'CFA Institute'

Formerly known as the Association for Investment Management and Research (AIMR), CFA Institute is an international organization comprised of more than 70,000 members who hold the Chartered Financial Analyst (CFA) designation or are otherwise bound by its rules. Its primary mandate is to specify and maintain a high standard for the investment industry.

BREAKING DOWN 'CFA Institute'

CFA Institute has active members in most countries. It is guided by a board of governors comprised of 20 board members, most of whom are elected by the institute's members for three-year terms. The Institute has major offices in the United States, Hong Kong and the United Kingdom, and it produces industry guidelines such as the Global Investment Performance Standards (GIPS).

The mission of CFA Institute is to promote the highest standards of ethics, education and professional excellence in the global investment industry. The Institute aspires to serve financial professionals by providing education, professional development and networking opportunities. It also aims to be a global leader in investment ethics, industry practice and capital market integrity.

CFA Institute has created and maintains the CFA Institute Code of Ethics and Standards of Professional Conduct, which is an ethical benchmark for investment professionals around the world, regardless of their specific jobs within the industry. Institute members and CFA charterholders and candidates are required to adhere to this document throughout their careers. Beyond monitoring and updating this standard of conduct and behavior for investment professionals, CFA Institute also works to shape and influence public policy and industry practice to put investors' interests first.

Designations Offered

Besides the industry work the Institute does, it also offers education programs resulting in various designations. The Chartered Financial Analyst (CFA) designation is its most popular and widely recognized. The CFA Program provides a strong foundation in portfolio management and investment analysis skills. The CFA charter is the professional standard of choice for over 31,000 investment firms worldwide. The designation requires candidates to pass three successive examinations that cover ethical and professional standards, quantitative methods, economics, financial reporting, corporate finance, equity, fixed income, derivatives, alternative investments and portfolio management.

Another designation offered by CFA Institute is the Certificate in Investment Performance Measurement (CIPM), which is designed to give candidates the practice-based investment performance and risk evaluation skills that are globally relevant. The program covers ethics and reporting standards, manager selection, appraisal, attribution and measurement.

The Institute also has the Claritas Program, which covers the essentials of investment roles, finance and ethics. The self-study program is designed to benefit people who work for or in investment and financial services companies, such as sales and marketing professionals, human resources, or information technology professionals.

RELATED TERMS
  1. Global Investment Performance Standards ...

    Ethical standards to be used by investment managers for creating ...
  2. Chartered Financial Analyst - CFA

    A professional designation given by the CFA Institute (formerly ...
  3. Ethical Investing

    Using one's ethical principles as the main filter for securities ...
  4. Security Analyst

    A financial professional who studies various industries and companies, ...
  5. Code Of Ethics

    A guide of principles designed to help professionals conduct ...
  6. Licensed International Financial ...

    A professional designation provided by the International Research ...
Related Articles
  1. Financial Advisor

    Study Does Not End After The CFA

    Getting your CFA is an admirable achievement, but it doesn't end there. Find out what is expected of CFAs after they become charterholders.
  2. Personal Finance

    An Introduction To The CFA Designation

    The CFA designation is seen as the key certification for investment professionals. Find out what the CFA signifies for candidates and investors.
  3. Financial Advisor

    The Alphabet Soup of Financial Certifications

    We decode the meaning of the many letters that can follow the names of financial professionals.
  4. Financial Advisor

    Asset Manager Ethics: Acting Professionally and Ethically

    To aid managers in understanding the requirements for ethical and professional behavior, we offer some basic guidelines.
  5. Personal Finance

    Career Benefits From The CFA Institute

    The CFA Institute provides members with a variety of ongoing career and networking benefits.
  6. Financial Advisor

    So, You Want to Earn Your CFA?

    Here are some pros and cons to consider before you take the CFA charter plunge.
  7. Personal Finance

    A Look At CFA Job Opportunities

    Being a CFA charterholder can take your career in many different directions. Find out what your option are.
  8. Investing

    Ethical Investing Tutorial

    Learn everything there is to know about ethical investing.
  9. Personal Finance

    Standards And Ethics For Financial Professionals

    Scandals and fraud have given financial professionals a black eye. Learn how to avoid typical ethical dilemmas.
  10. Financial Advisor

    CIPM: The Key To A Niche Career In Finance

    The prestigious CIPM designation can give you an edge in the finance world. Here's what you need in order to get it.
RELATED FAQS
  1. Can I still pass the CFA Level I if I do poorly in the ethics section?

    You may still pass the Chartered Financial Analysis (CFA) Level I even if you fare poorly in the ethics section, but don't ... Read Answer >>
  2. What are the benefits of hiring a Chartered Financial Analyst (CFA) to be my financial ...

    Find out what the CFA charter is. Understand the benefits of hiring a Chartered Financial Analyst as a personal financial ... Read Answer >>
  3. Are investments in the drug sector appropriate for ethical investors?

    Explore the question of whether investments in the pharmaceutical industry are appropriate for investors who wish to pursue ... Read Answer >>
  4. Why are business ethics important?

    Learn why ethics are an integral aspect of management philosophy and how sound business ethics benefit business, both large ... Read Answer >>
  5. How do business ethics differ from industry to industry?

    Learn how business ethics differ based on industry, from energy companies' environmental stewardship to tech firms' respect ... Read Answer >>
Trading Center