CFA Requirements

Introduction To CFA Requirements

The following article provides an outline for CFA Requirements. Chartered Financial Analyst (CFA) exam is 3 Levels of a computer-based exam. Candidates must pass all 3 Levels of the exam.

• CFA Level 1 Exam
• CFA Level 2 Exam
• CFA Level 3 Exam

This order of exams is not random. Candidates must pass one by one level of exam for CFA Charter holder.

CFA Charter Holder In 18 Months:

Officially by the CFA Institute minimum difference between two exams is 6 months. So, candidates must pass all three exams on the first attempt. It is a very hard and challenging scenario to overcome all exam levels. Now, in the year 2021 computer-based CFA exam is held more frequently, so candidates can pass all three levels of the exam in 12 -18 months.

Example:

CFA exam passed in 18 months.

Level 1 CFA exam in August 2021, Level 2 CFA exam in August 2022, Level 3 CFA exam May 2023.

Requirements Of CFA

• Candidates must be passing their Bachelor’s degree from any stream from recognized universities.
• Last year’s bachelor’s degree students can also apply for the CFA exam. They should complete their degree still register for the CFA Level 2 exam.
• Candidate should have an international passport.
• Internship and own business candidates can also apply for the CFA program.
• Candidates also have skills like teamwork, business communication, problem-solving, critical thinking, time management, and analytical skill.
• Candidates should be fluent in English to take the exam in English.
• Candidates should pay enrollment and registration fees.
• Complete professional conduct statement form.

CFA Chartered Holder Requirements

• To become CFA Charter holder candidates, need to pass all three levels of the CFA exam.
• At least 4000 hours investment-related work experience completed in 36 months.
• Candidate’s work experience must be directly involved with the investment decision-making process.
• Become a CFA Institute member and pay annual dues. Once a candidate’s application is approved and joined CFA Institute, candidates will earn a CFA charter.
• Candidates should follow the code and ethics of the CFA Institute.
• Should have three professional references. References will be asked to comment on the candidate’s work experience and verify professional character.

CFA Requirements Level 1

• Registration for Level 1 exam candidates should be with Bachelor’s degree or be a final year student.
• Candidates must have 4000 hours of professional work experience.
• Or a combination of candidate’s work experience and education total should be 4000 hours.
• If candidates registering the first time for the CFA program, then they are required to pay a one-time enrollment and registration fee of USD 450.

CFA Exam Questions

Multiple choice of questions in the CFA Level 1 exam consists of a question, a statement, and a table as well as three answer choices as choice A, choice B, and choice C.

In exam using two basic formats:

1. Sentence completion with three unique choices.

Example:

An analyst suspects that a company’s US GAAP financial statements may require adjustments because the company uses take-or-pay contracts. The most likely effect of the appropriate adjustment would be to increase the company.

• Return on assets
• Debt-to-equity ratio
• Interest coverage ratio

2. Questions with three unique choices.

Example:

An analyst suspects that a company’s US GAAP financial statements may require adjustments because the company uses take-or-pay contracts. Which of the following is most likely to increase as a result of the appropriate adjustment being made to the company’s financial statements?

• Return on assets
• Debt-to-equity ratio
• Interest coverage ratio

Recommended Articles

This is a guide to CFA Requirements. Here we discuss the introduction, CFA chartered holder requirements and requirements level 1, exam questions. You can also go through our other suggested articles to learn more –

1. CFA Exam
2. CFA Exam Level 2
3. CFA Course
4. CFA Exam Level 1