Specific educational prerequisites, an exam, work experience, and CFA Institute membership are all part of the CFA charter criteria. Although achieving these standards can be difficult, becoming a CFA charterholder can open numerous doors in global finance for you. You will also receive real-world experience that will help you service your clients better for the rest of your career. This article deconstructs the requirements to assist you understand what you need to accomplish to get the charter.
CFA Exam Success
You must first pass the CFA exam to get the CFA charter. There are three exam levels, each with its own set of topics and learning objectives. Investment tools, ethics, asset appraisal, and portfolio management are among the topics covered. Each exam level assesses a distinct aspect of learning. Level I emphasizes knowledge and comprehension, whereas Level II emphasizes application of concepts and analysis. Level III focuses on information synthesizing and evaluation, and it includes an essay element called constructive response.
The CFA exam is challenging. According to CFA Institute, candidates spend an average of 300 hours preparing for the exam for each level, and many find it easier with exam prep packages. It takes many candidates more than one attempt to pass each level. If you do not pass a level, you can take it again the following exam season.
Requirements for taking the CFA Exam
- Meet the CFA exam education prerequisite: To sit for the exam, you’ll need to have earned a bachelor’s degree or have two years remaining in your undergraduate studies. However, if you have four years of relevant work experience, or you have a combination of university education and work experience that totals four years, you could be eligible to take the exam.
- Have the proper documentation: To register for the Level I exam for the first time, you must have an international travel passport. It is the only form of identification accepted at the exam centers.
- Enroll in the CFA Program: The CFA Program is a self-study, graduate-level curriculum. You can start your enrollment from this CFA Institute web page.
- Understand the exam language: All three levels of the CFA exam are administered only in English.
- Live in a country where CFA Institute conducts business: Individuals who live in certain countries cannot take the CFA exam because of U.S. laws, sanctions, and trade regulations. CFA Institute has all the details.
Recent CFA Program Eligibility Changes
Meet Work Experience Requirements
To become a charterholder, you must have 4,000 hours of professional work experience with a focus on investment decision-making in no less than 36 months. Internships are accepted as experience if they are paid and full-time. In addition, if you own a business or work with a family business, that business can qualify you if your work is full-time, and you are paid for it.
Become a Member of CFA Institute
To receive your charter, you must become a member of CFA Institute. You can become a member while you are in the process of getting the charter or wait until the end. The application process has three phases, and it typically takes a few weeks to get approved. To apply, you must have:
- Passed at least Level I of the CFA exam
- Earned a bachelor’s degree or equivalent education and work experience
- Provided three professional references
Abide by the Code of Ethics
As a CFA Program candidate or CFA Institute member, you are required to abide by the Code and Standards of Professional Conduct, which are the ethical benchmarks for investment professionals around the world. The Code maintains that you must place the interests of your clients and the integrity of the profession above your own interests and that you must act with respect and professional competence.
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