New! Amazing Self-Paced Courses You Can Start Every Month!
A Chartered Financial Analyst (CFA) is a globally recognized certification that is issued by the CFA Institute. The only countries that it is not recognized in are Cuba, North Korea, Syria, Crimea in the Ukraine. Iranians must enroll with a special license. A CFA certification places more emphasis on finance and investments than accountancy.
A CFA can either be self-employed working for individual clients or as part of an organization or firm. They will analyze their clients’ finances to advise them on investment strategy and money management. They will help to manage their clients’ portfolios and to help analyses and manage their investment risks. The exams are considered far more intensive than those of the CPA.
Some of the tasks they perform include:
A CFA cannot work in public accountancy, meaning that they cannot present their clients before the IRS or sign tax forms or audit statements.
A CFA is a globally recognized designation, which means that in many cases there will be no need to apply for license reciprocity, as would be the case with a CPA license. It also demonstrates that the holder has gone the extra mile by acquiring acquired further knowledge and skills, and that you have the focus and self-discipline to complete the course and pass the exams. Since many people feel that the CFA exam is harder than the CPA exam, this accomplishment is all the more impressive. It also proves that the charter holder is proficient in the areas covered in the CFA exams, including investment strategy, portfolio management and asset evaluation, among other skillsets. If you plan on pursuing a career in investment, it is also a good way to ensure that you truly understand the field and will give your credentials a boost.
The first step to applying for CFA certification is to enroll in the CFA program. You will need to pass all three parts of the CFA exam. You will also require 4,000 hours of work completed within a minimum of 36 months, and a bachelor’s degree or equivalent. Experience earned through full-time, part-time, or remote work arrangements The higher learning must be acquired over a minimum of three sequential years. The experience does not need to be investment related but should be relevant to finance and accounting. In additional to meeting the work experience requirements, you will also need to provide 2-3 professional reference letters with your CFA application.
The full requirements can be found here.
The CFA exam is divided into three parts, called Level I, Level II and Level III. Each level needs to be taken in order, with each level getting progressively harder. While level one can be taken while you are completing your degree, to qualify for Level II of the CFA exam you will require to be within 11 months of completing your bachelor’s degree or equivalent program. Each exam is 270 minutes long, with an optional 30-minute break halfway through. Each exam comprises of 180 multiple choice questions. They had a 41-54% pass rate as of October 2022.
Although the exam is available in over 400 countries, it is only available in English. Additionally, every CFA Program candidate must have a valid international travel passport. Those without a passport will not be permitted to register or sit for exams.
The CFA exam is complex, and attempts to test not only the extent of your knowledge, but also your ability to apply it to real-world scenarios. Each level of the CFA exam is structured differently:
Since there is a lot more material to cover in the CFA exam, the recommended number of hours to study for each level of the exam is between 300-400 hours.
According to Indeed.com, the average annual salary of a CFA is $81,340 USD.
News and information
Ambassador Program
Firm Partnerships
CPA Requirements by State
FAQ
Course Re-Instatement/Re-Enrollment
Refer & Earn
Self-Paced Courses Info
Becker Partnership