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Delhi High Court Orders Stop To Unauthorized Use Of Global CFA Designation

 

Read The Delhi High Court Order (PDF)

 

 

NEW DELHI, India, August 17, 2006 − On 4 August, the Delhi High Court ordered an interim injunction against The Institute of Chartered Financial Analysts of India (Icfai). The court ordered the Hyderabad-based organization to cease using the Institute of Chartered Financial Analysts of India, Icfai, Chartered Financial Analyst and CFA trademarks by the end of the current academic session of Icfai. Further, the order recognizes that CFA Institute has exclusive ownership rights to the Chartered Financial Analyst and CFA trademarks.

 

“We are very pleased that the court has ordered the end of Icfai’s unauthorized use of the CFA credential in India,” said Sunil B. Singhania, CFA, president of the Indian Association of Investment Professionals, a member society of CFA Institute. 

 

“There is tremendous demand in India to earn the globally recognized CFA charter as our investment professionals are increasingly sought-after worldwide. Icfai has unfortunately created confusion in India through its unlawful use of the CFA credential. The court’s decision should end this confusion and reinforce the value of the CFA designation for investment professionals contemplating the CFA Program, employers who hire charterholders, and investors who seek the financial expertise of CFA charterholders.

 

“This ruling emphasizes that there is only one CFA credential that is globally recognized and highly valued. The CFA Institute mission is to serve the investing public, and this decision will help us to do just that.”

 

In 1997, CFA Institute filed suit against Icfai to stop its use of the Icfai, CFA, and Chartered Financial Analyst marks. On Friday, 4 August, the Honorable Ms. Justice Manju Goel rejected Icfai’s argument that CFA is a generic term. Rather, she recognized that the CFA designation is a trademark owned exclusively by CFA Institute and should be protected. In ordering an interim injunction, Justice Goel stated:

 

“[I]t is important for [CFA Institute] that these marks are associated with very high standards. If [Icfai is] allowed to continue using the marks [CFA Institute is] likely to suffer loss in their reputation and such loss may be irreparable.”

 

The injunction will take effect by the end of the current academic session of Icfai and continue until there is a final ruling in the case. Icfai has filed an appeal of the order.

 

“The Delhi High Court’s decision is a positive step for the investing community in India and worldwide,” said Jeffrey J. Diermeier, CFA, president and CEO of CFA Institute.

 

“For far too long, Indian students, investment professionals, and the investing public have been faced with two CFA designations,” Diermeier said. “We are pleased that the Delhi High Court has recognized our exclusive rights to the trademarks, and we are confident that the court will impose a permanent injunction after trial. CFA Institute will contest the appeal by Icfai and continue to protect the integrity of the CFA designation and what it stands for.”

 

About the CFA Program in India
In India, interest in the CFA designation has been particularly strong, and the CFA examination is administered in Mumbai, New Delhi, Chennai, Kolkata and Bangalore. The number of candidates enrolled for the CFA exam in fiscal 2006 (sitting for the December 2005 and June 2006 exams) rose almost 95% to 4,672 from fiscal 2005, the largest year-to-year increase worldwide. CFA Institute membership in India rose almost 35% to 206 members. Outside North America, India had the fourth largest number of candidates for the June 2006 examination. Already, more than 2,700 candidates have enrolled for the December 2006 Level One examination. To learn more, visit www.cfainstitute.org/India.

 

About the CFA Program
The CFA Program sets a globally recognized standard for measuring the competence and integrity of investment professionals, which includes securities analysts, portfolio managers, and investment advisers. The CFA Program provides a self-study education and is administered in three levels, each of which culminates in a six-hour examination. The course of study for the CFA Program — known as the Body of Knowledge — includes ten general topic areas ranging from corporate finance, portfolio management, securities analysis, and ethical and professional standards.

 

Administered exclusively in English, the CFA curriculum and examinations are identical worldwide. Only one in five candidates who begin the arduous program successfully completes it, while successful candidates, on average, take four years to complete the program and earn the coveted CFA charter. 

 

A candidate must pass each level of examination before proceeding to the next. Level One is administered twice each year, once in June and once in December, and Levels Two and Three are administered just once each year, in June, which makes the June examination the largest known simultaneously administered professional examination in the world.

 

Candidates must also complete at least four years of work experience in the investment profession and must commit to abide by the CFA Institute Code of Ethics and Standards of Professional Conduct, a commitment they must reaffirm each year once they earn the charter.

 

Enrollment for the December 2006 Level One exam closes 15 September while enrollment for the Levels One, Two and Three exams for June 2007 is open until 15 March 2007. To learn more, visit www.cfainstitute.org/cfaprog/.

 

CFA Institute
CFA Institute is the global, non-profit professional association that administers the Chartered Financial Analyst^® (CFA^®) curriculum and examination program worldwide, publishes research, conducts professional-development programs, and sets voluntary, ethics-based professional and performance-reporting standards for the investment industry. CFA Institute has more than 84,000 members in 128 countries and territories, including the world’s 69,600 CFA charterholders, as well as 134 affiliated professional societies in 55 countries and territories. CFA Institute is headquartered in Charlottesville, Va., USA, with regional headquarters in London, Hong Kong, and New York. More information may be found at www.cfainstitute.org. (Bloomberg users can find CFA Institute at 497458Z).