What is the CFA charter? What it means, how it is earned and who awards it
CFA stands for Chartered Financial Analyst. The CFA charter is a professional credential awarded by CFA Institute, the global professional body behind the CFA Program. People often use "the CFA" to mean the exams, but the exams are only one part of earning the charter. This guide explains what the charter is, what it takes to earn it, and what it does and does not tell an employer.
The charter and the program are different things
The CFA Program is the course of study and the three exams: Level I, Level II and Level III. The CFA charter is what you hold once you have completed the program and the other requirements. Someone who has passed all three exams but not yet met the rest is a candidate, not a charterholder, and may not use the letters after their name. See how to put the CFA on your CV.
What it takes to earn the charter
- Enrol and meet the entry requirements. A bachelor's degree, being an undergraduate in the right window, or 4,000 hours of work and/or higher education over at least three years. You also need a valid passport. See CFA exam requirements.
- Pass all three exams, in order. Level I, Level II, then Level III. See the format of each level.
- Complete qualifying work experience. At least 4,000 hours, completed over a minimum of 36 months. The hours must be directly related to the investment decision-making process, or to producing a work product that informs or adds value to it. Full-time, part-time and remote work all count, before, during or after the exams.
- Apply for membership. When you apply you describe your current and previous job responsibilities, and CFA Institute reviews them.
- Commit to the Code of Ethics and Standards of Professional Conduct, and complete an annual Professional Conduct Statement and disclosure to keep the charter.
Membership and annual dues, currently USD 299 a year, begin only once you apply for the charter, and a local CFA society's dues are separate. See how much the CFA costs.
The three levels
The levels build on one another and test different skills:
- Level I tests knowledge and comprehension across the curriculum, with 180 standalone multiple-choice questions.
- Level II tests application and analysis, with item sets built on case studies.
- Level III tests synthesis and portfolio management, with item sets and written essay questions.
Level I is offered four times a year, Level II three times and Level III twice. See the exam dates.
Where the charter is recognised
According to CFA Institute, the designation is globally recognised, with active members and candidates in more than 160 countries. How much weight a given employer gives it varies by market and role, so look at job descriptions in the field and country you want to work in.
What the letters do and do not signal
The charter signals that someone has passed a demanding sequence of exams, has relevant work experience, and has committed to a code of conduct. It does not guarantee a job, a promotion or a salary, and it is not a licence to carry out any regulated activity. For a way to decide whether it suits you, see is the CFA worth it.
Common questions
What does CFA stand for?
Chartered Financial Analyst. It is the name of the designation and of the program that leads to it.
Is passing the three exams enough to be a charterholder?
No. You also need at least 4,000 hours of qualifying work experience over a minimum of 36 months, membership of CFA Institute, and a commitment to its Code of Ethics and Standards of Professional Conduct.
Who awards the CFA charter?
CFA Institute, the global professional body that runs the CFA Program.
How many countries is the CFA recognised in?
CFA Institute says it has active members and candidates in more than 160 countries.
Sources
- CFA Institute, The CFA Program: the exams, the entry and charter requirements, membership and the global reach of the designation.
- CFA Institute, Become a charterholder: work experience and membership requirements.
Requirements and dues change. Check the current figures on the CFA Institute website.