Chartered Financial Analyst (CFA) Definition and Exams
By
ADAM HAYES
Updated April 19, 2022
Reviewed by
EBONY HOWARD
Fact checked by
SUZANNE KVILHAUG
What Is a Chartered Financial Analyst (CFA)?
A chartered financial analyst (CFA) is a globally-recognized professional
designation given by the CFA Institute, (formerly the AIMR (Association for
Investment Management and Research)), that measures and certifies the
competence and integrity of financial analysts. Candidates are required to
pass three levels of exams covering areas, such as accounting, economics,
ethics, money management, and security analysis.
From 1963 to the first half of 2022, more than two million candidates have sat
for the Level I exam, with 291,500 candidates ultimately going on to pass the
Level III exam, representing a weighted average completion rate of around
11%. In the last 10 years, the completion rate was slightly lower at 9.6%.1
Historically the pass rates on each exam have been below 50%, making
obtaining the CFA Charter one of the most difficult sets of financial
certifications; a minimum of 300 hours of study is recommended for each
exam.
• The CFA charter is one of the most respected designations in finance
and is widely considered to be the gold standard in the field of
investment analysis.
, • To become a charter holder, candidates must pass three difficult
exams, have a bachelors degree, and have at least four years of
relevant professional experience. Passing the CFA Program exams
requires strong discipline and an extensive amount of studying.
• There are more than 160,000 CFA chartholders worldwide in 164
countries and regions.
• The designation is handed out by the CFA Institute, which has nine
offices worldwide and 156 local member societies.
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What Is A CFA?
The Basics of Becoming a Chartered Financial Analyst (CFA)
The CFA charter is one of the most respected designations in finance and is
widely considered to be the gold standard in the field of investment analysis.
The designation is handed out by the CFA Institute, which is a global
nonprofit professional organization of more than 164,000 charter holders,
portfolio managers, and other financial professionals in over 151
countries.2 Its stated mission is to promote and develop a high level of
educational, ethical, and professional standards in the investment industry.
Before becoming a CFA charter holder, a candidate must meet one of the
following educational requirements. The candidate must have four years of
professional work experience, a bachelor's degree or be in the final year of
the bachelor's degree program, or a combination of professional work
experience and education totaling four years. For the undergraduate
qualification, the bachelor's program must be completed before registering for
the Level II exam. In addition to the educational requirement, the candidate
must have an international passport, complete the assessment in English,
meet the professional conduct admission criteria, and live in a participating
country.3
After meeting the enrollment requirements, the candidate must pass all three
levels of the CFA program in sequential order. The candidate must then
become a member of the CFA Institute and pay annual dues. Finally, they
must sign off annually that they are following the CFA Institute code of
ethics and standards of professional conduct. Failure to adhere to the ethics
and standards is grounds for possible lifetime revocation of the CFA charter.3
By
ADAM HAYES
Updated April 19, 2022
Reviewed by
EBONY HOWARD
Fact checked by
SUZANNE KVILHAUG
What Is a Chartered Financial Analyst (CFA)?
A chartered financial analyst (CFA) is a globally-recognized professional
designation given by the CFA Institute, (formerly the AIMR (Association for
Investment Management and Research)), that measures and certifies the
competence and integrity of financial analysts. Candidates are required to
pass three levels of exams covering areas, such as accounting, economics,
ethics, money management, and security analysis.
From 1963 to the first half of 2022, more than two million candidates have sat
for the Level I exam, with 291,500 candidates ultimately going on to pass the
Level III exam, representing a weighted average completion rate of around
11%. In the last 10 years, the completion rate was slightly lower at 9.6%.1
Historically the pass rates on each exam have been below 50%, making
obtaining the CFA Charter one of the most difficult sets of financial
certifications; a minimum of 300 hours of study is recommended for each
exam.
• The CFA charter is one of the most respected designations in finance
and is widely considered to be the gold standard in the field of
investment analysis.
, • To become a charter holder, candidates must pass three difficult
exams, have a bachelors degree, and have at least four years of
relevant professional experience. Passing the CFA Program exams
requires strong discipline and an extensive amount of studying.
• There are more than 160,000 CFA chartholders worldwide in 164
countries and regions.
• The designation is handed out by the CFA Institute, which has nine
offices worldwide and 156 local member societies.
0 seconds of 1 minute, 47 secondsVolume 75%
1:47
What Is A CFA?
The Basics of Becoming a Chartered Financial Analyst (CFA)
The CFA charter is one of the most respected designations in finance and is
widely considered to be the gold standard in the field of investment analysis.
The designation is handed out by the CFA Institute, which is a global
nonprofit professional organization of more than 164,000 charter holders,
portfolio managers, and other financial professionals in over 151
countries.2 Its stated mission is to promote and develop a high level of
educational, ethical, and professional standards in the investment industry.
Before becoming a CFA charter holder, a candidate must meet one of the
following educational requirements. The candidate must have four years of
professional work experience, a bachelor's degree or be in the final year of
the bachelor's degree program, or a combination of professional work
experience and education totaling four years. For the undergraduate
qualification, the bachelor's program must be completed before registering for
the Level II exam. In addition to the educational requirement, the candidate
must have an international passport, complete the assessment in English,
meet the professional conduct admission criteria, and live in a participating
country.3
After meeting the enrollment requirements, the candidate must pass all three
levels of the CFA program in sequential order. The candidate must then
become a member of the CFA Institute and pay annual dues. Finally, they
must sign off annually that they are following the CFA Institute code of
ethics and standards of professional conduct. Failure to adhere to the ethics
and standards is grounds for possible lifetime revocation of the CFA charter.3
