Henry Chua
CFA Institute – Asia Pacific
+852 9097 3783
henry.chua@cfainstitute.org
Aradhana Prabhu
Ogilvy Public Relations Worldwide – Mumbai
+91 22-44344139
Aradhana.Prabhu@ogilvy.com
CFA Institute Speaks Out Against Efforts To Confuse And Distract The Indian Investment Community
(View Open Letter to Indian Investment Community)
India, March 30, 2007 − CFA Institute today reaffirmed its commitment to the Indian financial markets and to the rapidly growing number of Chartered Financial Analyst (CFA®) candidates and CFA charterholders in India.
“Recent and unfortunate events make it important for us to redouble our efforts to communicate with the CFA Institute ‘family’ in India,” said Jeffrey J. Diermeier, CFA, president and CEO of CFA Institute. “Working with our local member society, the Indian Association of Investment Professionals (IAIP), we fully intend to continue expanding our service and support to CFA Institute members and candidates and the Indian financial community. We will vigorously promote our rights and reputation in India.”
“We are very concerned about the impact of false and misleading statements recently put forth by the Institute of Chartered Financial Analysts of India,” said Sunil B. Singhania, CFA, president of the IAIP. “We believe that their recent efforts to confuse the general public is a disservice to the investment community, educators, and employers. It is truly unfortunate that the profession and investors themselves may be affected by this needless confusion.”
Icfai, through its Icfai University, Tripura, and on its website, has claimed that the Gauahti High Court has ordered the All India Council for Technical Education (AICTE) to “take action against” CFA Institute. However, the Gauahti High Court order only states that “it is considered appropriate to direct the respondent authorities to examine the veracity of the allegations brought to the notice of this Court.” Thus, the Gauhati High Court has only directed the AICTE to determine whether CFA Institute must seek approval for our CFA Program from the AICTE.
Although a formal notice has not been received by CFA Institute, AICTE has issued a notice to IAIP, as directed by the High Court, inquiring about the status of the CFA Program in India. CFA Institute and IAIP will cooperate fully with AICTE while it conducts its evaluation. CFA Institute believes that these recent actions are another attempt by Icfai to mislead the media, investors, educators, and regulators.
Existing regulations do provide that without approval of the AICTE, no foreign university or institution may operate any educational activity in India that leads to the award of a technical education diploma or degree. Technical education is defined in the AICTE Act as: programmes of education, research and training in engineering technology, architecture, town planning, management, pharmacy and applied arts and crafts and such other programmes or areas as the Central Government may, in consultation with the Council, by notification in the Official Gazette, declare.
The CFA Program, in the field of financial analysis and investments, is not “technical education.”
Further, there is no mention of CFA Institute or the CFA Program on the AICTE List of Unapproved Institutions Running Technical Programmes with Foreign Collaboration (DOC). There are, however, numerous references to Icfai itself on the List of Unapproved Institutions Running Technical Programmes without AICTE Approval (DOC).
“This action by Icfai is simply an attempt to confuse the public and distract attention from the Delhi High Court’s interim injunction order,” said Diermeier. In August 2006, the Delhi High Court recognised that CFA Institute is entitled to exclusive use of the “Chartered Financial Analyst” and “CFA” trademarks in India. Further, the Delhi High Court ordered Icfai to cease using the CFA trademarks by the end of the current academic session of Icfai. This decision is currently under appeal. CFA Institute currently has trademark registrations in 54 countries around the world, including India.
As part of its commitment to the Indian investment community, CFA Institute recently appointed S.V. Balachander, CFA, as its consultant in India. In association with Balachander’s appointment, several new CFA Institute India contacts, along with live help support, have been established to respond to inquiries about the CFA Program and CFA Institute. CFA Institute strongly encourages anyone with questions or concerns about Icfai’s efforts at confusion to visit www.cfainstitute.org/india or e-mail india@cfainstitute.org.
CFA Institute in India
The CFA examination is administered worldwide twice a year – in June
(Mumbai, New Delhi, Chennai, Kolkata, and Bangalore) and December
(Mumbai). Almost 7,000 candidates have enrolled to take one of
three levels of the CFA examination in India in June 2007, representing
growth of about 220 percent from June 2006. In December 2006, India
trailed only the United States in the number of candidates who sat for
the exam. The interests of Indian investors, CFA charterholders,
and CFA candidates are supported by the Indian Association of Investment
Professionals, which was founded in April 2005 as a member society of CFA
Institute. The IAIP currently has more than 200 members.
CFA Institute
CFA Institute is the global, not-for-profit professional
association that administers the Chartered Financial Analyst (CFA®)
curriculum and exam programme worldwide; publishes research; conducts
professional development programmes; and sets voluntary, ethics-based
professional and performance-reporting standards for the investment
industry. CFA Institute has nearly 90,000 members, who include the
world’s 77,000 CFA charterholders, in 130 countries and territories, as
well as 134 affiliated professional societies in 55 countries and
territories. CFA Institute has obtained trademark registrations for its
“CFA” and “Chartered Financial Analyst” marks in 54 different countries,
with various trademark applications pending in those and a number of
additional countries. In 2007, CFA Institute celebrates the 60th
Anniversary of “the founding of a profession.” CFA Institute has offices
in Charlottesville, Va., London, Hong Kong, and New York. More
information may be found at www.cfainstitute.org. (Bloomberg users can find CFA
Institute at 497458Z).