Background & career journey of a CFA charterholder and NEDonBoard member
For many professionals, the journey into non-executive directorship begins with deep expertise in a particular field. For Niels Andersen, the starting point was investment management sales, working with well-known asset managers. His role required him to act as a bridge between portfolio management teams and institutional investors, which is why he pursued the CFA charter early in his career. This credential strengthened Niels’ ability to represent investment strategies effectively, as well as providing him with a deep understanding of financial ethics, risk management, and governance.
Niels Andersen’s first experience as a non-executive director (NED) came 20 years ago when he joined the board of a trade association. Over time, he took on various roles, including President and Treasurer, leveraging his CFA background to contribute financial and strategic insights. Today, he continues to serve as a Director and Treasurer for a non-profit organisation.
Lessons learned from the transition to NED roles
📚 Embrace the NED mindset
Transitioning from an executive role to a NED position requires a shift from operational involvement to strategic oversight. Niels Andersen highlights the importance of adopting the “nose in, fingers out” approach, maintaining strategic oversight without getting involved in daily operations. This shift can be challenging for those accustomed to hands-on roles but is essential for effective governance and a delineation of roles.
📚 Recognise the CFA charter’s influence on board contributions
The CFA charter instils a strong ethical foundation, which is crucial in boardroom decision-making. Few outside of the CFA charter community fully appreciate the depth of the ethical commitments embedded in the charter. On a board, fiduciary responsibility is paramount: directors must always act in the best interest of their shareholders and broader stakeholders. The CFA ethics framework reinforces this principle and provides an added layer of accountability and commitment.
✍ Leverage financial expertise
A CFA charterholder brings a unique perspective to the boardroom. CFA charterholders offer a broad, investment-oriented view, complementing the skills of qualified accountants and others with financial backgrounds. Their expertise is particularly valuable in areas such as:
- Risk awareness and control: Identifying risks and understanding mitigation strategies.
- Strategic decision-making: Applying ROI and ROIC insights to evaluate new markets or business directions.
- Governance and oversight: Asking the right probing questions to ensure comprehensive discussions and informed decision-making.
- Ethical decision-making: Leveraging the ethical foundation of the CFA charter to uphold fiduciary responsibilities.
- Audit: A charterholder brings an investment-centric lens to the scrutiny of financial statements, and this can be additive to audit reviews or committees.
The depth of financial expertise that CFA charterholders bring to the table goes beyond numbers, it’s about perspective. These skills enable them to ask strategic questions that challenge thinking, drive comprehensive discussions, and lead to more informed and balanced decision-making at the board level.
– Niels Andersen
Recommendations for CFA charterholders considering NED roles
✅ Start with non-profits or trade associations
For those starting out, Niels Andersen recommends joining boards of non-profits or trade associations within your industry. These roles offer valuable governance experience while fostering meaningful connections and networks.
✅Build a board-ready CV
Unlike traditional CVs, a board CV should highlight governance experience, strategic oversight, and fiduciary responsibilities. Focus on demonstrating how your financial and career expertise translates into strategic value for a board.
✅Continuous learning and networking
To remain relevant and effective, Niels Andersen stresses the importance of continuous education. Additionally, networking is crucial. Attend events, engage with peers, and ensure your presence is known in relevant professional circles.
The role of NEDonBoard, Institute of Board Members in his NED career
Niels Andersen has leveraged his membership in the following ways:
➡️ Networking opportunities
➡️ Professional development and insights
➡️ Valuable resources to position yourself for opportunities
Final thoughts
For CFA charterholders aspiring to join boards, the journey requires preparation, planning, continuous learning, and proactive networking. The CFA charter provides a solid foundation. But success in the boardroom also comes from embracing the NED mindset and board-focused professional development and upskilling. Start small, stay committed, serve on committees, and actively build your board profile.
Niels Andersen serves as a Consultant to JPES Partners, representing the London-based firm in North America. Along with career experience spanning senior roles at Franklin Templeton, American Century, and Altrinsic Global Advisors, Niels has provided leadership and oversight through board director appointments in the US, UK, and Ireland.
NEDonBoard, Institute of Board Members looks forward to supporting CFA Charterholders in their transition to board roles.
