CFA without a Finance Background: Passing Strategies

Is it feasible to become a CFA charterholder without having a background in finance? You can take the CFA exam without one, but you'll need to gain experience by working in specific finance roles to finish the process of becoming a charterholder. We'll break it all down for you in this article, starting with the prerequisites for obtaining the charter, and demonstrate how you may still complete it even if you haven't studied or worked in finance. ‍

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Criteria for Becoming a CFA Charterholder

In order to become a CFA charterholder, you must:

1. Have two years left to finish your undergraduate studies or possess a bachelor's degree (or the equivalent). You can also begin the CFA Program if you have 4,000 hours of relevant job experience, or 4,000 hours total if you add your professional work and academic experience.

2. Take the Level I, Level II, and Level III CFA exams and pass them.

3. Join the CFA Institute (membership costs $275 USD and requires adhering to the institute's code of conduct).

4. Provide CFA Institute with documentation demonstrating your 4,000 hours of full-time employment in an investment decision-making position or with a product that supports the process. This can include any work experience you have both before and after passing the exam.

As you can see, the first three steps do not require a finance background. As a result, there are definitely CFA charterholders who have taken the CFA exam without finance experience. As one charterholder wrote in a Quora comment, “It is a great learning experience if you want to quickly understand what finance is generally about. It provides a good, general picture.”

Recent CFA Program Eligibility Changes

Tips for Studying for the CFA Exam

If you haven’t studied or worked in finance before, here are some study tips that can help you prepare for the exam and increase your chances of passing it:

• Learn the differences between the CFA exam levels. Read this article about the difference between Level I and Level II and then read this one about Level II and Level III. Knowing the differences will help you with your study plan for each one.
• Develop your study plan 9 months before you sit for each level of the exam. CFA Institute recommends a minimum of 300 hours of study. However, you should plan to put in about 360 hours (or more) to allow for learning concepts that finance practitioners already know. Set aside the first 120 hours for reading and listening to lectures. Then, spend 150 hours or so working through practice questions. Your final 90 hours should be dedicated to simulating exam conditions with practice and mock CFA exams to assess how ready you are. Mock exams can also help you learn how to stay calm on exam day.
• Make all CFA Institute Learning Outcome Statements part of your plan. The Learning Outcome Statements (LOS), CFA Program curriculum, and core concepts from CFA Institute help you determine what to study. Follow them in the order that they’re presented, and make sure you put extra time in on ethics.
• Stick to your plan with the help of CFA exam prep courses. To stay on task, take a CFA exam prep course, and treat it like a university class. Read the relevant material beforehand, get rudimentary ideas of the topics to be covered, and compile any questions you want to ask.
• Consider how to apply each concept in the real world. If you’re not sure, ask someone with experience for assistance. Joining a local CFA Society, visiting online forums on reddit, or attending financial education meetups can connect you with resources who can help with this.
• Take a break if you start feeling overwhelmed. At some point, you might start wondering if all the work is worth it. Don’t give up. Instead, take a few days or a full week off. Don’t answer any more practice questions, and don’t open a book. You’ll be surprised at how a short break can motivate you to return to your studies.

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What about the Work Experience Requirement?

The general consensus of CFA charterholders who started without a finance background is that gaining work experience is the biggest hurdle. A good rule of thumb is to look for a position as soon as you pass Level I of the exam. The kind of jobs you can get after passing Level I are intern, accountant or assistant accounting manager, investment administrator, fund analyst, investment product analyst, and junior equity research analyst.

To find a job, apply the determination you used to pass the exam to your search. You should also network as much as possible. If there is a CFA society where you live, you should join it (if you haven’t already) as part of your job search. Besides offering opportunities for networking via events and volunteering, many CFA societies have professional development programs and specific career assistance. You should also use contacts from LinkedIn, attend career fairs, and participate in professional finance events.

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