The Chartered Financial Analyst (CFA) program is a postgraduate professional certification offered internationally by the US-based CFA Institute (formerly the Association for Investment Management and Research, or AIMR) to investment and financial professionals. The program teaches a wide range of subjects relating to advanced investment analysis—including security analysis, statistics, probability theory, fixed income, derivatives, economics, financial analysis, corporate finance, alternative investments, portfolio management—and provides a generalist knowledge of other areas of finance.
The CFA designation is designed to demonstrate a strong foundation in advanced investment analysis and portfolio management, accompanied by a strict emphasis on ethical practice.
A charter holder is held to the highest ethical standards. Once an investment professional obtains the charter, this individual also makes an annual commitment to uphold and abide by a strict professional code of conduct and ethical standards. Violations of the CFA code of ethics may result in industry-related sanctions, suspension of the right to use the CFA designation, or a revocation of membership.
Requirements
To become a CFA charter-holder, candidates must satisfy the following requirements:
Have obtained a bachelor's (or equivalent) degree or be in the final year of a bachelor's degree program. However, an accredited degree may not always be a requirement.
Pass all three levels of the CFA program (mastery of the current CFA curriculum and passing three examinations).
Have 4,000 hours in a minimum of three years of qualified work experience acceptable by the CFA Institute.[9] However, individual-level exams may be taken prior to satisfying this requirement.
Have two or three letters of reference.
Become a member of the CFA Institute.
Adhere to the CFA Institute Code of Ethics and Standards of Professional Conduct.
Due to the timing of the exams, completing all three levels of the CFA is possible within two years,but candidates must still complete the work experience requirement of 4,000 hours over a minimum of three years to become a charter-holder.
Pass rates
The CFA exams are noted to be notoriously difficult, with low pass rates. During the period 2010–2021, pass rates for Levels 1-3 ranged from 22-56% .The CFA Level 1 examination in May 2021 and July 2021 made news headlines after plummeting to a record-low pass rate of 25% and 22%, respectively, and in August 2021, the level 2 pass rate fell to 29%.
Do employers check degrees?
Only 53% of employers always check job candidates' education credentials. Slightly more than half of the employers surveyed, 53%, always verify the education credentials listed on a job applicant's resume. Among the rest, 24% sometimes check applicants' education records, while 23% never do.
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