How to Become a Chartered Financial Analyst -- CFA
The Chartered Financial Analyst (CFA) designation is obtained by investment professionals who have completed the rigorous requirements of the CFA Institute. A member of the CFA Institute is called a charterholder. The CFA is a globally recognized and respected credential certifying the holder has in-depth knowledge of security types, complex asset vehicles, quantitative analysis methodologies and investment value/risk assessment. The CFA often is required by employers for senior positions in securities research, investment management and financial adviser roles. The CFA is a prestigious credential that increases worth and credibility as a financial professional.
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Instructions
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Consider the Chartered Financial Analyst benefits and decide if its right for you. Having a CFA certification can generate greater credibility and respect from employers, clients, colleagues and the media. It also may give you a competitive advantage over other investment professionals and competitors with the experience and expertise the CFA certification represents. Having your CFA certification gives you membership in a global network of more than 100,000 CFA professionals.
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Consider the cost involved. CFA program costs include a one-time enrollment fee and a registration fee for each exam taken.
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Verify and fulfill the CFA Institute entrance requirements. You must have at least a U.S. bachelor's degree or be in enrolled in the final year of a bachelor's degree program at the time of registration at the CFA Institute. Alternatively, you also may have four years of professional, qualified work experience (as judged by the CFA Institute) or a combination of qualified work experience and college that totals at least four years. You must be able to meet the professional conduct admission criteria. You also must be prepared to take the exams in English.
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Register for the first exam to become a CFA candidate. Sign up for the first exam at the CFA Institute. This automatically enrolls you as a candidate in the Chartered Financial Analyst Program. The one-time enrollment fee and fee for the first exam is paid at registration.
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Sign a Candidate Responsibility Statement. When you register in the CFA Program, you are agreeing to the CFA Institute Standards of Professional Conduct and Code of Ethics. During the enrollment process, a Candidate Responsibility Statement must be signed and the candidate must agree to abide by the CFA Institute policies and procedures.
The code of ethics requires candidates to act with dignity, competence, integrity in an ethical manner. The Standards of Professional Conduct require the candidate not engage in a professional manner involving fraud, dishonesty, misrepresentation or deceit.
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Take and pass the three mandatory exams. To become a Chartered Financial Analyst charterholder, three rigorous six-hour exams must be successfully passed over at least three years. The time required to study and prepare for each exam will vary based on each candidate's experience, educational background and previous knowledge. On average, candidates should plan to spend at least 250 hours to prepare for each exam.
Candidates may take as long as needed to complete the CFA program. Results never expire and there is no limit of times you can take each exam level.
Exams are given at locations around the world in June for all three levels and in December and June for Level I only. Level I questions are all multiple choice. The Level II questions are all case-study questions. The Level III exams contain essay questions in the morning session and item set questions in the afternoon session. All level exams include morning and afternoon sessions.
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Once the three tests are successfully passed, the CFA candidate can apply to become a CFA Institute charterholder member. When the application for membership is accepted, the Chartered Financial Analyst and CFA designation can be used.
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References
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