Organized by the CFA Institute, the chartered financial analyst (CFA) title is one of the most prestigious designations in finance. Charterholders have undergone self-study comparable to an MBA program and passed three rigorous exams that most have failed. Ordinary investors who familiarize themselves with the title can be more assured their investments are well-managed by financially adept, experienced, and ethical individuals.
The Exams
There are three exams, all of which the candidate must pass to earn the full CFA designation. Each year, the organization offers Level I exams in June and December and Level II and III exams in June only. The pass rates are 37%, 44%, and 49% as of August, February, and May 2022, respectively, according to the CFA Institute.
The topics in the exam thoroughly cover ethical and professional standards, quantitative methods, economics, financial statement analysis, corporate issuers, equity investments, fixed income, derivatives, alternative investments, portfolio management, and wealth planning. The CFA Institute lists 31 institutions that provide test-prep resources for those interested in taking the exams.
Qualifications
To enroll in the Level I exam, potential candidates must either (1) complete a bachelor’s or equivalent program, (2) be current undergraduate students within 11 months of graduation month, or (3) hold 4,000 hours of work experience or higher education over three sequential years. Potential candidates can find more details regarding entrance requirements at www.CFAInstitute.org.
Current undergrads must complete their degree programs before advancing to the Level II exam. All individuals must also live in a participating country and hold a valid passport, take the exams in English, and meet the criteria for professional conduct. Passing each previous exam qualifies the candidate to take the next one.
Taking the Next Step
The respected certification requires focus, discipline, and professional, ethical conduct. To learn more or become a candidate, visit the CFA Institute website. If you are an investor interested in the service of Tulsa financial advisors, including Matt Redmond, CFA, contact First State Investment Advisors at (918) 492-1361.
This overview is for informational purposes only and is not a recommendation. It should not be the sole deciding factor in making an investment. Investing is a risk and, as with all risks, a positive return is not guaranteed. Past performance does not indicate future results.