The Hindu Business Line : Is the CFA programme `technical education'?

Chennai May 23 The Web site of the CFA Institute (www.cfainstitute.org) wears a distraught look. `Important update regarding June 2007 CFA exams in India,' reads a posting dated May 22. "We have received some very disappointing news regarding the status in India of the globally recognised CFA examinations," it begins sombrely.

Reason: The Institute is upset that the All-India Council for Technical Education (AICTE) has ordered it to "cease all operations in India" because it had not obtained approval to conduct the CFA Program in India.

"The AICTE decision is an unfortunate development for the Indian financial profession and especially for the more than 6,800 candidates enrolled in India for the global CFA Program, who have each already dedicated more than 250 hours of intense study to prepare for the upcoming CFA examinations," rues the Institute.

With exams scheduled on June 3, the release assures that it is "working diligently to find a solution."

Headquartered in the US, and with a mission "to lead the investment profession globally by setting the highest standards of ethics, education, and professional excellence," the CFA Institute has members in 134 countries. Its history can be traced back to May 1947.

In March this year, the AICTE had issued a show cause notice to the Institute asking why action should not be taken against it for the violation of "AICTE regulations dated May 16, 2005 for entry and operation of foreign University/institution imparting technical education in India."

Technical education programmes and courses at all levels, "including certificate, diploma, post-diploma, degree, post-graduate and research of any duration," require AICTE approval if conducted "directly or in collaboration with a foreign University/institution."

Since the CFA Institute has no "mandatory approval," the AICTE has stated in its letter dated May 18: "You are therefore advised to cease the operation of your institution in respect of conduct of CFA programme in India with immediate effect. The authorities concerned including State Government/Union Territory are being advised to take appropriate measures to shut down/close down operation of your institution invoking appropriate provision of civil and criminal laws applicable in such cases."

The Council's communiqué cites the order of the Gauhati High Court (Agartala Bench) dated March 12 on a petition filed by the Institute of Chartered Financial Analyst University, Tripura asking how a foreign institute such as the CFA Institute was functioning in India in violation of the AICTE guidelines.

In an `open letter' dated March 30, the CFA Institute had spoken out "against efforts to confuse and distract the Indian investment community."

Refuting the ICFAI's claim that the High Court had ordered the AICTE to "take action against" the CFA Institute, the US body clarified that the court has only directed the AICTE to determine whether the Institute must seek approval for the CFA Program from the AICTE.

"The CFA Program, in the field of financial analysis and investments, is not `technical education'," claims the CFA Institute.