How to become a CFA charterholder: the requirements, step by step
Passing the exams is the part everyone talks about, but it is only part of becoming a CFA charterholder. The charter is awarded by CFA Institute when a candidate has done several separate things. This guide sets out what they are and how they fit together. CFA Institute sets and changes the requirements, so treat what follows as an outline and confirm the details on its website before you plan around them.
The requirements in outline
To earn the charter you need to:
- Enrol and meet the entry requirements. Candidates generally need an undergraduate degree or to be in the final year of one, or to have equivalent professional work experience. Check the current eligibility rules and identification requirements for the exam.
- Pass all three exams, in order. Level I, then Level II, then Level III. Each tests a different skill, described below.
- Complete qualifying work experience. At least 4,000 hours of relevant professional experience, accumulated over a minimum of 36 months.
- Provide professional references supporting your application for membership.
- Become a member of CFA Institute and commit to its Code of Ethics and Standards of Professional Conduct, including signing the professional conduct statement each year.
Only when all of these are complete can you use the CFA designation. Someone who has passed all three exams but not yet met the other requirements is a candidate, not a charterholder.
The three exams
The exams are taken in sequence and are different in character:
- Level I is about knowledge and comprehension across the whole curriculum. Questions are standalone multiple-choice items.
- Level II is about application and analysis, usually on investment cases. Questions are grouped into item sets, each built on a short case study.
- Level III is about synthesis and portfolio management for individuals and institutions, and includes written, constructed-response questions.
You can see what each level covers, topic by topic and by exam weight, in the syllabus, starting with Level I. For when the exams are offered and what they cost, see exam dates and exam fees.
The work experience requirement
The 4,000 hours is not a clock that starts when you pass an exam. CFA Institute describes the experience as work that directly involves, or supports, the investment decision-making process, or produces a work product that informs or adds value to it. It may be gained before, during or after the exams, so a candidate who has been working in the industry for years may already hold much of it.
Several things follow from the design of the rule:
- The 36 months is a minimum span as well as a minimum number of hours, so you cannot compress 4,000 hours into a shorter period.
- Roles that are plainly investment work are the easiest to document, such as research, portfolio management and risk. Other roles may qualify, but you should read the guidance and check before assuming they do.
- Experience is something you submit and have reviewed. Keep a record of your employers, dates and what you did.
Ethics is part of the charter, not a topic on the exam
The Code of Ethics and Standards of Professional Conduct are examined at every level, but they are also a standing obligation for members. Charterholders sign a professional conduct statement every year, and CFA Institute can discipline members who breach the standards. The charter is partly a statement about how you behave.
Planning around the requirements
Because the requirements run in parallel, the sensible approach is to start all of them early:
- Begin recording your work experience from day one, whether or not you have passed anything.
- Remember the minimum span of work experience. If you have little experience so far, it, rather than the exams, may set the earliest date you can be a charterholder.
- Look at the exam schedule before choosing which sitting to aim for, as not every level is offered in every window.
Sources
- CFA Institute, The CFA Program: the structure of the program, the exams and the charter.
- CFA Institute, Become a charterholder: work experience, references, membership and the professional conduct statement.
Requirements change. This guide describes them in outline and is not a substitute for the current rules on the CFA Institute website.