A candidate who successfully completes the program and meets other professional requirements is awarded the "CFA charter" and becomes a "CFA charter-holder". As of December 2024, at least 200,000 people are charter-holders globally, growing 5.5% annually since 2012 (including the effects of the pandemic).[1] Successful candidates take an average of four years to earn their CFA charter.[2][3]
Sectors with the highest proportion of CFA Charter-holders[5]
Sector
%
Portfolio Management
25%
Research
12%
Consulting
10%
Chief level executive
9%
Investment strategy
7%
Risk management
7%
Wealth management
5%
Credit analysis
5%
Trading
4%
Accounting / audit
4%
Financial planning
3%
Others
9%
The predecessor of the CFA Institute, the Financial Analysts Federation (FAF), was established in 1947 as a service organization for investment professionals. The FAF founded the Institute of Chartered Financial Analysts in 1962; the earliest CFA charter-holders were "grandfathered" in through work experience only, but then a series of three examinations was established along with a requirement to be a practitioner for several years before taking the exams. In 1990, in the hopes of boosting the credential's public profile, the CFA Institute (formerly the Association for Investment Management and Research) merged with the FAF and the Institute of Chartered Financial Analysts.
The CFA exam was first administered in 1963 and began in the United States and Canada, but has become global with many people becoming charter-holders across Europe, Asia, and Australia. By 2003, fewer than half the candidates in the CFA program were based in the United States and Canada, with most of the other candidates based in Asia or Europe. The number of charter-holders in India and China had increased by 25% and 53%, respectively, from 2005 to 2006.[6]
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.
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.[7]
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.[8] 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.[citation needed]
The CFA exams are among the most difficult exams offered globally.[9][10][11] During the period 2014–2024, pass rates for CFA Levels 1-3 ranged from 22-59%.[12]The CFA level I examination in May 2021 and July 2021 made news headlines after plummeting to a record-low pass rate of 25% and 22%, respectively,[13][14] and in August 2021, the level II pass rate fell to 29%.[15] The sudden drop in pass rates and candidate volume has yet to fully recover since 2020 and 2021.[16]
This section needs to beupdated. Please help update this article to reflect recent events or newly available information.(May 2022)
Thecurriculum for the CFA program is based on a Candidate Body of Knowledge established by the CFA Institute.[17] The CFA curriculum is updated annually to reflect the latest best practices, with the extent of changes varying by year and level.[18][19] The curriculum comprises, broadly, the topic areas below. There are three exams ("levels") that test the academic portion of the CFA program. All three levels emphasize the subject of ethics. The material differences among the exams are:
TheLevel I study program emphasizes tools and inputs and includes an introduction to asset valuation, financial reporting and analysis, and portfolio-management techniques.
TheLevel II study program emphasizes asset valuation and includes applications of the tools and inputs (including economics, financial reporting and analysis, and quantitative methods) in asset valuation.
TheLevel III study program emphasizes portfolio management and includes descriptions of strategies for applying the tools, inputs, and asset valuation models to manage equity, fixed income, and derivative investments for individuals and institutions. Since 2025, CFA Institute has introduced a Core curriculum plus a choice of 3 elective options called Specialized Pathways: Portfolio Management, Private Markets and Private Wealth.[20]
2012 Level III CFA Program Curriculum
For exams from 2008 onward, candidates are automatically provided the curriculum readings from the CFA Institute at the time of registration for the exam. The curriculum is not provided separately in the absence of exam registration. If the student fails an exam and is allowed to retest in the same year, the CFA Institute offers a slight rebate and will not send the curriculum again (the curriculum changes only on an annual basis). If the student retests in a year other than the year of failure, he or she will receive the curriculum again, as it may have been changed. Study materials for the CFA exams are available from numerous commercial learning providers, although they are not officially endorsed. Various organizations (some officially accredited) also provide course-based preparation.[21]As of 2019, the examination includes questions onartificial intelligence, automated investment services, and mining unconventional sources of data.[22]
The ethics section is primarily concerned with compliance and reporting rules when managing an investor's money or when issuing research reports. Some rules pertain more generally to professional behavior (such as prohibitions againstplagiarism); others specifically relate to the proper use of the designation for charter-holders and candidates. These rules are delineated in the "Standards of Professional Conduct", within the context of an overarching "Code of Ethics".
Bothmicroeconomics andmacroeconomics are covered, including international economics (mainly related to currency conversions and how they are affected by international interest rates and inflation). By Level III, the focus is on applying economic analysis to portfolio management and asset allocation.
The curriculum includes coverage of global markets as well as analysis andvaluation of the various asset types: equity (stocks),fixed income (bonds),derivatives (futures, forwards, options, and swaps), andalternative investments (real estate, private equity,hedge funds, and commodities). The Level I exam requires familiarity with these instruments. Level II focuses onvaluation, employing the "tools" studied under quantitative methods, financial statement analysis, corporate finance, and economics. Level III centers on incorporating these instruments into portfolios.
The curriculum includes coverage of a range of topics in the alternative investment category. Topics includehedge funds,private equity,real estate, natural resources (particularly precious metals), infrastructure, and other alternative investments, including, as applicable, strategies, sub-categories, potential benefits and risks, fee structures, and due diligence.
Given the time and effort that candidates must undergo to complete the CFA program, it would be expected that CFA charter-holders havehigher performance than those who do not complete the program. Academic research has suggested evidence that differential performance is economically significant,[26] supporting the predominance ofsignaling. Furthermore, research in theFinancial Analysts Journal (a journal published byCFA Institute) suggests a positive human capital impact from the CFA program.[27]
TheAustralian Securities & Investments Commission (ASIC) has ranked the RG 146 Gap Training Program for CFA charterholders and CFA Program candidates at Tier 1. The RG 146 Gap Training Program is intended for candidates who have passed the CFA Level I exam or charterholders who wish to fulfill the requirements necessary to provide both financial product advice to retail clients and personal advice.[28]
TheGovernment of Australia recognizes CFA Charter-holders as having automatically satisfied Standard Sets A, C, and D under the Code of Professional Conduct for Authorized Financial Advisers (AFA).[29]
Macquarie University recognizes completion of CFA Level III as equivalent to a bachelor’s degree in a relevant discipline in the admissions process. Similarly, successful completion of CFA Level I or II, combined with a bachelor’s degree in a non-relevant discipline, will be treated as a bachelor’s degree in a relevant discipline in the admissions process. Students who have passed CFA Levels I, II, or III are eligible for course waivers.[30]
Griffith University recognizes that students who have passed the CFA Level I exam are exempt from the GMAT, GRE, and BAT score requirements, as well as the requirement of completing a specialized undergraduate degree in finance. Applicants who have passed the CFA Level 1 exam are eligible for 40 CP credits (four courses) in the foundation component of the Master of Finance program.[31]
TheCentral Bank of Bahrain (CBB) recognizes CFA Charter-holders as meeting the requirements for the regulated functions of Head of Treasury, Financial Instruments Trader, and Investment Consultant.[32]
CFA Charter-holders automatically satisfy the requirements for the mandatory Financial Advice Program (AFP) level II.
Comissão de Valores Mobiliários (CVM) recognizes successful CFA Level III candidates as satisfying the requirements of taking the global content exams of the National Certificate of Professional Investment (CNPI).[33]
CFA charter-holders are recognized by Brazilian main regulator of securities analysts, APIMEC,[34] as the equivalent to their "global content" test, although the candidates must still pass a "local content" test to award their memberships.
The CFA Institute is a recognized Educational Institution by Revenu Quebec
CFA Charter-holders are legally recognized by theCanadian Securities Administrators (CSA) as qualifying for the position of portfolio manager, investment counsel, adviser in derivatives & commodity futures, exchange contracts and for the position of securities adviser.[35]
Certain Finance programs are recognized by the CFA Institute as a part of their University Recognition Program. This status is granted to institutions whose degree programs incorporate at least 70 percent of the CFA Program Candidate Body of Knowledge (CBOK).[36]
TheDeutsche Börse AG considers the successful completion of the CFA Level III exam as satisfactory for the requirements necessary to be an exchange trader.
The Capital Market Commission (CMC) waives licensing requirements for the position of investment analyst and portfolio manager for those who have passed CFA Level III.
The Academic and Accreditation Advisory Committee of the SFC has approved the CFA designation as a recognized industry qualification for the licensing of Responsible Officers inHong Kong.[40]
CFA Society Hong Kong (formerly The Hong Kong Society of Financial Analysts Limited) is recognized by the SFC as an institution for providing Continuous Professional Training (CPT). Continuing Education programs and seminars organized by CFA Society Hong Kong qualify for CPT hours.[41]
TheIsrael Securities Authority (ISA) requires six exams and an internship to become a portfolio manager. Exams include securities law and ethics, accounting, statistics, and finance; economics; securities and financial instrument analysis; and portfolio management. CFA charterholders are automatically considered to have completed five out of six exams.[43]
The Securities Commission Malaysia (SC) requires Capital Markets Services Representatives License (CMSRL) applicants to pass various exams. CFA charterholders are waived from four exams.[44]
The Comision Nacional del Sistema de Ahorro para el Retiro (CONSAR) grants the general finance certification permanent license to people who have completed the CFA Institute Investment Foundations Program.[45]
The Dutch Securities Institute (DSI) recognizes the completion of the CFA Level 1 exam as being sufficient for the qualification to be a financial analyst.
The Dutch Securities Institute (DSI) recognizes CFA charterholders as automatically meeting the qualifications requirement to be a senior fund manager.
The Superintendencia del Mercado de Valores (SMV) recognizes applicants who have passed CFA Level I to be approved for the role of portfolio manager.[46]
The Securities and Exchange Commission of the Philippines requires at least one fund manager to have passed CFA Level 1 in order to manage mutual funds.
The Comissão do Mercado de Valores Mobiliários (CMVM) (Portuguese Securities Market Commission) officially recognizes a CFA Charter-holder as fully satisfying the qualifications to register as an investment adviser or financial analyst.[47]
TheMonetary Authority of Singapore (MAS) recognizes CFA Charter-holders seeking to apply for a license as a Capital Markets Services (CMS) Representative to be exempt from modules 6 and 7 of the Capital Markets and Financial Advisory Services (CMFAS) Exam.
TheFAIS licensing process for Financial Service Providers (FSP) exempts CFA Charter-holders from category I, II, IIA, III, and IV of the FSP's entry level qualification for the Key Individuals and Representatives licensing process.[49]
Exemptions are available for various modules in theSouth African Institute of Financial Markets "Registered Persons Examination",[50] depending on the candidate's level.[51] No exemptions are available for the examination on local market regulations and compliance.
Candidates who have passed Level 1 of the CFA Program are able to apply for the Certified Advisor (CAd) designation, a certification awarded by the CFA Society of Spain. CAd certification is recognized by Spain’s national securities regulator, the CNMV, as meeting the requirements of the European Union’s MiFID II directive for investment professionals who engage in any type of client advisory. Candidates must also pass the CAd test on Spanish and EU regulation, commit to the CFA Institute Code of Ethics and Standards of Professional Conduct, and be a local member of CFA Society Spain. CAd certification must be renewed every year by demonstrating 30 hours of continuous professional development (CPD) and reconfirming the observance of the code and standards.[54]
The Securities and Exchange Commission of Sri Lanka authorizes that CFA charterholders automatically meet the requirement to practice as investment managers, managing client funds.[55]
The Securities Investment Trust & Consulting Association (SITCA) of Taiwan officially recognizes CFA charterholders as qualified to practice as securities investment analysts.
CFA charterholders are not required to sit the Securities Investment Trust Licensing Exam.
The Capital Markets Board (CMB) of Turkey considers the passing of CFA Level I, II, and III to be equivalent to the CMA Level 1, 2, and 3 licensing exams.
In 2009, the UKNational Academic Recognition Information Centre (UK NARIC) bench-marked the CFA Program and the CFA charter as comparable to a Qualifications and Credit Framework (QCF) Master's Level 7.[citation needed] The levels of the CFA Program were bench-marked as:
Level III of the CFA Program and the CFA charter are bench-marked at Level 7 by NARIC
Level II of the CFA Program is bench-marked at Level 6 by NARIC
Level I of the CFA Program is bench-marked at Level 5 by NARIC
The Investment Adviser Registration Depository (IARD) exempts CFA Charterholders from the required competency exams to register as an investment adviser.
TheNew York Stock Exchange (NYSE) exempts candidates who have passed CFA level I from the portion of the Series 16 exam that deals with rules on research standards and related matters from Part II of the NYSE Supervisory Analyst Qualification Exam.
TheUniversity of California, Berkeley, considers Master of Business Administration (MBA) candidates who have passed the CFA Level III exam to be granted an automatic waiver in two core courses.
TheUniversity of Notre Dame considers CFA charterholders in the Executive Master of Nonprofit Administration (EMNA) to be eligible for a waiver of required course work.
Boston University considers CFA charter holders to be eligible for waivers for up to two out of 10 courses in the Master of Science in Financial Management (MSFM) on-campus and online degree programs.
Duke University considers students enrolled in its graduate business programs who have passed the CFA Level III exam to be eligible for an unconditional administrative exemption from Finance 645.
The State Securities Commission (SSC) considers candidates who have passed CFA Level II to be sufficient in exempting them from three required securities practicing certificates:[57]
Basic issues regarding securities and the securities market
TheSociety of Actuaries (SOA) granted the credit of "Validation by Educational Experience (VEE)-Economics" to the candidates who passed the CFA Level I exam. SOA also granted both the credits of VEE-Corporate Finance and VEE-Applied Statistical Methods to the candidates who passed the CFA Level II exam.[59]
Professional Risk Managers' International Association (PRMIA)
TheCertified Financial Planner Board of Standards (CFP Board) has approved the CFA charter as fulfilling most of the education coursework requirement for CFP certification, pending completion of a capstone course registered with CFP Board prior to sitting for the CFP exam.[61]
Chartered Alternative Investment Analysts Association (CAIA Association)
In 1998, CFA Institute's predecessor organization, AIMR, sued and won a judgment in an American court against ICFAI/CCFA.[63] The judgment prohibited ICFAI/CCFA and its members from using the CFA or Chartered Financial Analyst mark in the United States and Canada. In August 2006, an Indian court issued a temporary injunction against theIndian entity, as well.[citation needed]
The judgments made no assessment of the quality of the Indian program and merely discussed the trademark violation. TheIndian Association of Investment Professionals is the only organization in India that is affiliated with the CFA Institute. The CFA Institute's trademark rights to the "CFA" and "Chartered Financial Analyst" brands were affirmed in India by the Delhi High Court. Further, the Delhi High Court issued an interim injunction ordering ICFAI and its affiliated Council of Chartered Financial Analysts to stop using CFA Institute trademarks. The Deputy Registrar of Trade Marks determined that the trademark registration issued to CFA Institute for the "CFA" brand must be republished because of an error by the Trade Marks Registry. CFA Institute has numerous trademark applications on file with the Trade Marks Registry, and CFA charterholders from CFA Institute are free to use the "CFA" and "Chartered Financial Analyst" marks throughout India.[64]
On May 8, 2007, theU.S. District Court for the Eastern District of Virginia vacated adefault judgment issued against ICFAI that CFA Institute obtained in October 1998. ICFAI had moved to reopen the case and to vacate the default judgment arguing that the court lacked jurisdiction over ICFAI at the time the default judgment was issued. With the default judgement vacated, ICFAI informedIndian CFA charter holders that they could legally use their charter in the United States and Canada. However, on September 4, 2007, the court reversed its decision to vacate after a motion to reconsider that decision was filed by CFA Institute.[65][66]
In January 2007, theUK Trade Marks Registry refused to register "Chartered Financial Analyst" as a trademark, as the word "chartered" in theUnited Kingdom is associated with bodies incorporated byroyal charter and thus "the relevant public in the UK would, prima facie, expect a person using the mark applied for to be representing themselves as a member of an organization of the kind subject to a Royal Charter".[67] "CFA" is a registered trademark in the UK, but only for "Educational services" (class 41) rather than "Financial services" (class 36) under which the attempt to register "Chartered Financial Analyst" had been made.[68]
^De Franco, Gus; Zhou, Yibin (2009). "The Performance of Analysts with a CFA ® Designation: The Role of Human-Capital and Signaling Theories".The Accounting Review.84 (2):383–404.doi:10.2308/accr.2009.84.2.383.ISSN0001-4826.JSTOR27802657.
