CFA INSTITUTE Vs. ALL INDIA INSTITUTE OF TECHNICAL EDUCATION
LAWS(DLH)-2007-5-248
HIGH COURT OF DELHI
Decided on May 31,2007

CFA INSTITUTE Appellant
VERSUS
ALL INDIA INSTITUTE OF TECHNICAL EDUCATION Respondents

JUDGEMENT

- (1.) BADAR DURREZ AHMED, J. The petitioner No.1 (CFA Institute) is a non-stock corporation incorporated under the laws of Virginia (USA) and has its office at 560, Ray C. Hunt Drive, P.O. Box 3668, Charlottesville, VA-22903-0668, USA. The petitioner No.1 claims to be a global professional association comprised of more than 89,000 individual members and 134 member societies across the world. Individual members either hold the Chartered Financial Analyst (CFA) Designation or are active in the investment business. For the purpose of becoming members or being awarded the CFA Designation, individuals must have at least four years of professional work experience in the investment profession. As per the petitioners, the CFA Designation was first awarded in 1963 and is a designation of professional excellence in the global investment community. According to the petitioners, employers and investors throughout the world consider the CFA designation awarded by the petitioner No.1 as the definitive standard for measuring investment analysis competence and integrity.
(2.) The attainment of the CFA Designation requires the passing of three levels of tests all conducted by the petitioner No.1. As stated in the petition, the petitioner No.1 provides testing on one day in June for all three levels and in December of each year for the first level alone. These tests are conducted in rented quarters using local proctors and support with the attendance of one of the petitioner No.1's employees to monitor the quality. It is stated that the petitioner No.1 is a testing and certifying organisation conducting a self-study course with tests for its candidates on only two days a year in India. It is categorically stated that there are no ongoing educational activities requiring a local collaborating partner.
(3.) It is further stated on behalf of the petitioners that the course of study for each of the three levels is suggested and a body of knowledge from which the testing is drawn is provided. Each person enrolling for the examination, however, is left to determine his own method of preparation. No instructional programmes are offered by the petitioner No.1. After the passing of the three levels of tests / examinations, an individual aspiring to attain the CFA Designation must further prove his or her professional experience in the financial field and provide professional references which are closely examined by the petitioner No.1. The individual must submit to ethical rules of the petitioner No.1 and pay professional dues to retain the CFA Designation. According to the petitioners, passing of the examination alone is not sufficient for the award of the CFA Designation. For it may be revoked for failure to pay the required membership dues or for ethical violations.;


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