Global gold-standard regulator of finance

The Chartered Financial Analysts Institute's man in the Emirates says local talent has filled the gap caused by expert analysts forced to leave after so many brokerages have closed.

Yacoub Husein Nuseibeh says the CFA Institute is committed to promoting all aspects of financial education to support the development of the UAE's economy. Ravindranath K / The National

Yacoub Nuseibeh is the president of the Emirates branch of the Chartered Financial Analysts (CFA) Institute, a global body that oversees standards of financial research.

How long has CFA Institute been up and running in the Emirates and how big is it?

CFA Institute is the global association of investment professionals with more than 110,000 members in 141 countries and territories including nine national societies in the Mena [Middle East and North Africa] region. CFA Emirates was established in 2002 and over the past 10 years has become the largest society in the region comprising 550 members which includes portfolio managers, investment advisers, educators and other financial professionals from a diverse range of organisations and businesses.

Is it a lobby group, a trade association or a networking unit?

CFA Institute awards the CFA and CIPM [certificate in investment performance measurement] designations and has become a leading voice on global issues of fairness, market efficiency and investor protection. It offers a range of educational opportunities across the world with a dedicated mission to lead the investment profession globally by setting the highest standards of ethics, education, professional excellence and corporate governance.

The CFA designation is a mark of distinction that is globally recognised by employers, investment professionals and investors as the definitive standard - the gold standard - by which to measure serious investment professionals. To earn the CFA charter, a candidate must successfully pass through the CFA programme, a practice-based, graduate level self-study programme that combines a broad curriculum with professional conduct requirements and emphasises the highest ethical and professional standards. In addition, the CFA Institute established the CIPM. It offers the industry's only designation dedicated solely to the specialised field of investment performance, evaluation and presentation.

In the UAE, CFA Emirates works alongside government departments, regulators, educators and financial institutions and businesses to raise the standards of the investment profession in the UAE. It also hosts events, professional talks and CPD [continuing professional development] seminars and manages the bi-annual examination programme. It also coordinates the National Investment Research Challenge with local universities and business schools, the winners of which go on to take part in the global final alongside students from all over the world.

How does it handle relations with official organisations?

CFA's financial training and education programmes are playing an ever increasing role in the expansion and growing maturity of the UAE's investment and broader financial services sectors. Working alongside the country's exchanges and regulators, it is committed to promoting all aspects of financial education in order to support the development of the UAE's economy. The Emirates branch has been consulted by Esca [Emirates Securities and Commodities Authority or SCA] in conducting licensing exams for financial analysts and portfolio managers working in the UAE. We also worked with Hawkamah [the Institute for Corporate Governance] on corporate governance-elated rules.

The region has seen something of an exodus of top-quality research analysts since the financial crisis. Why, in your view?

I think you are referring to equity research analysts that are specialised in the UAE and regional markets. Given the financial crisis that engulfed the world and the region, a lot of brokerage companies shut their offices and, in turn, a lot of analysts had to leave the country. However, given the significant growth we have since seen in the number of CFA charterholders based in the UAE and wider region, I can say a lot of local talent has been raised and filled the gap in the market.

What can be done to attract back those who left?

There are two conditions that will bring back some of the top equity research talent: ever improving conditions in the local market generating good trading volumes; and greater transparency and improvement in the quality of financial statements issued by listed companies. This has been addressed, however, more is still needed.

What is the CFA's view on the crucial issue of free exchange of information in financial markets? Can research houses in the UAE perform according to international best practice?

CFA charterholders are expected to work to the very highest ethical standards and we have a disciplinary process should this not be delivered, wherever they work in the world. We sincerely believe if more investment and financial professionals had a professional qualification such as our own, then some of the mistakes and excesses we have seen around the world in the past few years could perhaps have been avoided. We know transparency is a key issue, not just for the UAE but for the broader Middle East.

It is a challenge the Government is aware of and through the work it is doing with organisations such as our own, it is seeking to address this problem. It remains a challenge but essentially the more practising financial professionals based here who seek international experience, gain international qualifications and increasingly work to international standards within a tightly regulated market, the more likely we will be able to create and enforce international best practice.