Last week, the ICAEW unveiled pass rates for its ACA exams. For anyone used to the 42% average pass rate for the CFA exams, ACA passes were abnormally high: 79% passed business reporting; 83% passed business change and 74% passed their case study.
By comparison, only 38% passed the CFA Level 1 this year.
Needless to say, the CFA and ACA qualifications are two very different species. Achieving the CFA Charter means passing three exams requiring a total of about 300 hours of independent study (assuming you pass), typically spread over a four year period. While you take these CFA exams you may be doing a job that's totally unrelated to financial services, although in order to achieve the full charter you'll also need four years of qualifying work experience.
Meanwhile, if you want an ACA qualification you'll have to pass 15 exams in total, have 450 days of technical work experience and complete professional development and ethics training modules. Unlike the CFA, you can't just decide to embark upon all this of your own accord: you'll need to find yourself an ACA training vacancy. Such vacancies typically go to university leavers, but are also offered to 'mature students' (who are willing to contemplate a big pay cut).
ACA careers are not the same as CFA careers. Whereas most CFAs end up in portfolio management or research, most ACAs find themselves in audit and insurance or working as a financial analyst. There's also some overlap: both can be found in areas like risk and corporate finance, for example.
If you can achieve a 'training vacancy,' the ACA appears to offer some important advantages over its rival acronym.
Firstly, you'll almost certainly come out with a qualification. With the CFA, there's a less than 50% chance of this.
Secondly, our own research suggests you may be more employable. ACA is the most popular search term in our CV database. Each time we look, the ratio of jobs to candidates on eFinancialCareers is by far the highest for ACAs.
The downside of the ACA is that you can't study for it whilst in your current job: you'll have to get an ACA training contract.
And as a full ACA, you will probably earn less than as a CFA Charterholder. Our analysis earlier this year suggested the average CFA job advertised on this site paid £88k. The average ACA job paid £66k.
An ACA may also condemn you to a life of audit. "The ACA will give you a guaranteed floor on your lifetime earnings, but will not ensure you a very sexy career," says one financial services professional, who's wondering retrospectively whether he should have achieved it in light of the current employment market.