CFA PROGRAM GUIDE - CFA Institute
CFAPROGRAMGUIDE CFA , Chartered Financial Analyst , CIPM , GIPS and Financial Analysts Journal are some of the trademarks owned by CFA Institute.CFA Institute is the global association of investment professionals that sets the standard for professional excellence and credentials.The organization is a champion of ethical behavior in investment markets and a respected source of knowledge in the global financialcommunity. Our aim is to create an environment where investors’ interests come first, markets function at their best, and economies grow. 2021 CFA Institute. All rights reserved.
Contents04 INTRODUCTION04 What is the CFA Program and CFA Charter?05 Importance of Ethics and Standards“Among the countless finance degreesaround the world, the CharteredFinancial Analyst qualification hasbecome the gold standard.”Financial Times06 HOW THE CFA CHARTER HELPS TO ADVANCE CAREERS06 Benefits of Becoming a CFA Charterholder07 Top Five Global CFA Charterholder Roles08091011WHO SHOULD CONSIDER THE CFA PROGRAM?Enrollment RequirementsBenefits of the CFA Program for StudentsCFA Program Scholarships12 CFA PROGRAM CURRICULUM, STRUCTURE AND CONTENT12 Curriculum Development13 Exam Structure and Content14141515161617SITTING THE CFA EXAMSComputer-Based TestingRegistration ProcessCFA Program CostsStudy MaterialsHelping Candidates to Understand Their ResultsWhat is Key to Exam Success?18 FREQUENTLY ASKED QUESTIONS23
INTRODUCTIONWHAT IS THE CFA PROGRAMAND CFA CHARTER?CFA ProgramCFA CharterImportance of Ethics and StandardsTHE CHARTERED FINANCIAL ANALYST(CFA ) Program is designed to equipcandidates with the knowledge andskills necessary to compete and excelin today’s complex and evolvinginvestment industry.The CFA charter is a designation awarded byCFA Institute to those who have completed theCFA Program and achieved CFA Institute regularmembership.The CFA Institute Code of Ethics andStandards of Professional Conduct (Code andStandards) are fundamental to the values ofCFA Institute and essential to achieving itsmission to lead the investment professionglobally by promoting the highest standardsof ethics, education, and professionalexcellence for the ultimate benefit of society.It is a self study, three-level exam that tests thefundamentals of investment tools, company valuation,portfolio management, and wealth planning. Whether anindividual is an aspiring or practicing investmentprofessional, the CFA Program offers a way to moveforward and achieve professional goals.The curriculum is developed by CFA Institute, one of theworld’s leading associations of investment professionals.By enlisting the investment industry’s brightest minds tocontinually improve the CFA Program, CFA Instituteensures that the curriculum is always relevant andprovides real-world skills in investment analysis.“If you hire investment professionals witha CFA [designation], you absolutely haveconfidence at the level of qualification.You can hire people with an MBA, but youdon’t necessarily know that one MBA isthe same as another MBA.”As the highest distinction in the investmentindustry, the CFA charter is the gold standard. Itis globally recognized and held by over 170,000professionals worldwide in 164 markets.CFA charterholders are qualified to work insenior management positions across theinvestment industry.To earn the CFA Charter, an individual must:Pass the three levels of the CFA exam(Level I, Level II and Level III)Become a CFA Institute regular member by Attaining qualified work experience S ubmitting an application whichincludes– D ocumenting qualifying workexperience– Submitting references– Applying for society membership J oining CFA Institute as a regularmember upon receiving acceptanceCFA Program candidates are required tofollow the Code and Standards.The Code of Ethics maintains thatyou must: P lace the integrity of the professionand the interests of clients above yourown interests A ct with integrity, competence, andrespect M aintain and develop your professionalcompetenceThe Standards of ProfessionalConduct cover: P rofessionalism and integrity of thecapital markets Duties to clients and employersLearn more cfainstitute.org/programs/cfa/charter I nvestment analysis andrecommendations C onflicts of interest and yourresponsibilitiesJenny Johnson Franklin Templeton COO/PresidentLearn more cfainstitute.org/ethics-standards45
HOW THE CFA CHARTERHELPS TO ADVANCE CAREERSThe recognition thatcomes with earning aCFA charter benefitscharterholdersthroughout their careers.Benefits of Becoming a CFA CharterholderWidely considered the apex for professionaldevelopment in the investment industry, theCFA designation is valued by employers for rolesand functions in every sector of global finance,including portfolio management, analysis,private wealth, and consulting. Distinguishedby their commitment to set a higher standard ofexcellence, charterholders are sought after asinvestment industry professionals.With over 180,000 CFA Institute regular membersaround the globe, CFA charterholders have aninstant network of like-minded professionalsthat can help support them in their careers.Key BenefitsTop Five Global CFA Charterholder RolesROLESExpansive Knowledge, Skills, andCommitment to EthicsThe CFA charter provides the strongestfoundation in advanced investmentanalysis and real-world portfoliomanagement skills for a career advantagethat can be used at all stages of anindividual’s career. It prepares an individualto enter today’s market and signifies astrong foundation and commitment toethics and professionalism.1Portfolio Manager2Sell-Side Equity Research Analyst3Private Wealth Management4Corporate Finance, M&A5Private Equity General PartnerPRACTICE TYPESRelevance in a Variety of Career Paths1EquitiesCFA charterholders occupy a range ofinvestment decision-making roles includingbuy-side, sell-side, corporate and advisorypositions. Many CFA charterholders areportfolio managers (including hedge fundmanagers), private wealth managers, equityresearch analysts, manager-of-managers,and brokers.2Fixed Income3Private Equity4Derivatives5Real EstateValue in an Evolving IndustryAs a globally recognized credential in theinvestment industry, earning the CFAcharter demonstrates to employers thatan individual has the knowledge andcommitment to thrive in today’s complexand evolving investment industry. TheCFA designation is a mark of distinction,and investment firms know it represents ahigher standard.“Finance workers seek the CFAcharter because it typicallyoffers the promise of betterjobs and higher salaries.”Bloomberg67
WHO SHOULD CONSIDERTHE CFA PROGRAM?The knowledge andskills gained from theCFA Program will helpaspiring or practicinginvestment professionalsto thrive in a highlycompetitive industryThe CFA Program offers practicing investmentprofessionals, university students, or thoseswitching careers with a way to enhance theircareer and achieve their professional goals.As a generalist program, it covers a breadthof transferrable skills preparing individualsfor many different job roles. Individuals thattake the CFA Program early in their career canbroaden their options.“I wanted a globally recognizedqualification that would provemy competency.”Nina de Martinis-Majstorovic, CFAParis, FranceEnrollment RequirementsTo enroll in the CFA Program and register for thefirst level of the CFA exam (Level I), a candidatemust have a valid international travel passport,be prepared to take the exams in English, meetthe Professional Conduct Admission criteria, andmeet one of the following entrance requirements:Bachelor’s DegreeComplete a bachelor’s program orequivalent program and received auniversity/college degree. If you are notsure if your program is comparable, askyour college or university.orFinal-Year StudentSelected exam window must be 11 monthsor fewer before graduation month forbachelor’s degree or equivalent program.orProfessional Work ExperienceHave a combination of 4,000 hours ofwork experience and/or higher educationthat was acquired over a minimum ofthree sequential years and achieved bythe date of registering for the Level I exam.The dates of education and professionalwork experience cannot be overlapping.Learn more www.cfainstitute.org/programs/cfa/charter89
Benefits of the CFA Program for StudentsIf a university student is planning for a career in theinvestment industry today, the CFA Program canplay a key role in building success.Suits Any ScheduleStudents can advance through the program bysetting their own schedule for study and sitting theexam. It is possible to get started while in school —enrolling and taking the Level I CFA exam before thefinal academic year, as long as it is within 11 monthsof graduation.Competitive AdvantageWith the CFA charter, individuals will gain acompetitive advantage among employers bypossessing a globally recognized credential.Combined with the career support resources thatare available as a candidate and member, studentscan be well prepared for a wide variety of careers.Global RecognitionThe CFA charter is globally recognized as the goldstandard in the investment industry, giving CFAcharterholders a passport to work in any financialmarket they choose.“Those three letters give youan edge over other graduateson the job market.”Financial TimesPowerful ROIThe CFA Program is a good return on investment.Earning the CFA charter gives individuals thedistinction of joining a prestigious group of eliteinvestment professionals — an achievement that canopen doors for career growth. With an investmentof USD 1,250, individuals can register for the Level ICFA exam and begin to reap the benefits of the CFAProgram journey in the job market.Students Have a Head StartStudents are already used to studying and arewell prepared to tackle the deep, higher educationcurriculum of the CFA Program (particularly if theyare in a finance-related major).Stand Out with a Digital BadgeCFA Institute distributes digital badges to candidatesthat have successfully passed Level I or Level IIof the CFA Program. Digital badges offer a way forcandidates to showcase their achievement in anonline, verifiable format. CFA Institute also distributesdigital badges once an individual earns the CFAcharter and for professional learning milestones.10CFA Program ScholarshipsScholarships, or discounts on the price of the CFAProgram, help make the CFA charter more attainableand give more people an opportunity to advancetheir career.Scholarships are available to full-time studentsattending a school in the CFA Institute UniversityAffiliation Program; full-time college/universityprofessors; and /or administrators/departmentheads who teach a minimum number of credithours at qualified institutions.Additional types of scholarships are available, all ofwhich waive the program enrollment fee and reducethe exam registration fee.Learn more: www.cfainstitute.org/programs/cfa/scholarships11
CFA PROGRAM CURRICULUM,STRUCTURE AND CONTENTCurriculum DevelopmentCurriculum TopicsKeeping the Curriculum Relevant and RigorousThe CFA Program includes the foundational knowledgethat firms expect as well as the critical advancedinvestment analysis and portfolio management skillsthat are needed in the investment industry today.CFA Institute updates the curriculum regularly, soit reflects modern financial practices, includingmachine learning; fintech; organizing, visualizing,and describing data; and environmental, social, andcorporate governance (ESG) investing. Thus, allowingcandidates to bring what they have learned throughthe CFA Program to real-world scenarios.Industry Practitioner Input at Every StageThe curriculum is developed through an EducationAdvisory Committee that includes industrypractitioners, security market regulators, universityfaculty, and policymakers. Involving financial thoughtleaders helps ensure that CFA Institute provides theskills the industry wants. This approach, known as theProgram Practice Analysis process, plays a key rolein establishing the CFA Program as the global goldstandard of investment credentials.Exams That Evolve in ComplexityETHICAL AND PROFESSIONAL STANDARDS:i.e. Application of the Code and Standards:Level II and Level IIIQUANTITATIVE METHODS:i.e. Machine Learning and Backtesting &SimulationECONOMICS:i.e. Technical AnalysisThe chart below explains the differences between each exam.Level ILevel IILevel IIIExam TopicsInvestment Tools: Ethics & ProfessionalStandards Quantitative Methods Economics Financial Reportingand Analysis Corporate FinanceAsset Classes: Ethics & ProfessionalStandards Equity Investments Fixed Income Derivatives AlternativeInvestmentsPortfolio Managementand Wealth Planning: Ethics & ProfessionalStandards Portfolio Management Wealth PlanningQuestion FormatMultiple choice questionsVignette-supportedmultiple choicequestionsVignette-supportedconstructed responsequestions and vignettesupported multiplechoice questionsExam ResultsAvailabilityWithin 60 days of takingthe examWithin 60 days of takingthe examWithin 90 days of takingthe examLevel AdvancementMeet CFA Programenrollment requirementsPass Level I CFA examPass Level II CFA examPass Rate42%*45%*54%*CORPORATE ISSUERSEQUITY INVESTMENTS:i.e. Private Equity InvestmentsFIXED INCOMEDERIVATIVES:i.e. Pricing and Valuation of ForwardCommitmentsALTERNATIVE INVESTMENTSPORTFOLIO MANAGEMENT AND WEALTHPLANNING:i.e. Organizing, Visualizing, and Describing Dataand Topics in Private Wealth Management12The CFA Program is comprised of three levels of exams. Each level of the curriculum builds on the prior level andbecomes increasingly complex, with a core of ethics and professional standards across all levels. The total testingtime for each exam is 4.5 hours.FINANCIAL STATEMENT ANALYSIS:i.e. Private Real Estate InvestmentsKnowledge that Evolves with Industry NeedsCFA Institute researches and identifies trends thatsignificantly affect the investment industry. Theseinsights inform updates to the curriculum to reflectcurrent practices and help CFA charterholderssucceed in a constantly changing profession.Exam Structure and Content*10 year average pass rate as of 2012-202113
SITTING THECFA EXAMSComputer-Based TestingCFA Program Costs*CFA Institute has transitioned all CFA exams tocomputer-based testing. This enables CFA Instituteto operate with flexibility and adjust to the changinglandscape quickly and reliably in response to eitherglobal or local situations. Exams are hosted in over400 testing centers located in most major citiesaround the world.Registration costs vary depending on when acandidate decides to register for the exam. An earlyregistration period is available for all three levels,which reduces the exam cost from USD 1,200 toUSD 900. There is a one-time enrollment fee ofUSD 350 the first time a candidate registers for theLevel I exam. An enrollment fee is not charged forsubsequent exams. All fees must be paid in US dollars.Computer-based scheduling has enabled CFAInstitute to retire single-day test administrationin favor of more convenient, computer-based testadministration. This provides options for candidatesaround the globe by increasing the number of examadministrations for every level, providing multi-dayexam windows, and a broader footprint of test areasto improve flexibility.Operating in a fully digital format aligns to real-world,professional environments, allowing CFA Institute tobetter model the tasks and problem-solving needs oftoday’s investment professionals.Candidates are permitted to take the exam a maximumof twice each calendar year but not in consecutivewindows or windows that are six months or less apart.Candidates will have a total of six maximum attemptsper exam level.The latest information on testing is available ased-examsOne-Time Enrollment FeeUSD 350 Early RegistrationUSD 900orStandard RegistrationUSD 1,200Registration ProcessRegistering for the CFA exam is a two-step process:Step 1:Enroll in the CFA exam through the CFA Institutewebsite www.cfainstitute.org/programs/cfa/registerStep 2:Care should be taken when scheduling a computerbased exam appointment, as a rescheduling feeis applied if a candidate wishes to move the examappointment in an exam window.Scan the QR code for registration dates, exam windowsand pricing details:After the registration process is complete andpayment processed, candidates will be able toschedule their exam via a Prometric schedulingtool, which presents available testing centers withdates and times. This step must be completed bythe scheduling deadline.14* Prices for February 2023 window CFA exams and beyond15
Study MaterialsHelping Candidates to Understand Their ResultsPassing the three exams marks true mastery of thecurriculum and is the most important task requiredto earn the CFA charter. On average, candidatesreport investing over 300 hours of study in advanceof successfully passing each level.After completing the CFA Program exam, CFAInstitute wants to ensure candidates have theinformation needed to prepare for the next stepin their journey, whether that is preparing for thenext level, signing up to re-take the same level, orpursuing other opportunities.Becoming a CFA charterholder takes hard workand commitment. When you are a candidate,complete support is provided through the LearningEcosystem, an adaptive study tool that helpscandidates to prepare for the exam, available onlineand as an app.CFA Institute provides candidates with access toa wealth of information that will help them to passthe CFA exams and excel in their career.Exams are graded as either “pass” or “did not pass”and detailed performance feedback is provided.A score report indicates the minimum passingscore, provides details on a candidate’s examperformance relative to other candidates, andhighlights performance by topic area and item type.What is Key to Exam Success?Study Tools: Learning EcosystemCFA Institute has developed acomprehensive Learning Ecosystem thatis available to all registered candidates. Itis a digital portal which includes an officialprogram curriculum, study sessions foreach level, custom study plans, and more.Prep Courses and MaterialsIn addition to the support providedby CFA Institute, candidates in theCFA Program can benefit from extraexam prep courses and materials.ScholarshipsAs part of the CFA Institutecommitment to promoting the higheststandards of professional excellence,scholarships help make the CFAProgram more accessible for peoplewho want to advance in their careers.16300 HOURSOn average, candidates spend over300 hours of study per exam level.EXAM PREPAll exam questions are based onCFA Program curriculum.STUDY TOOLSOnline Learning Ecosystem, PracticeQuestions, Mock Exams, CandidateDiscussion Board, and Prep Courses.4 YEARSOn average, it takes over four yearsto complete the full program.17
FREQUENTLYASKED QUESTIONSQ. D o I need to enroll in the CFA Program and pay myregistration fees for the Level I CFA exam at thesame time?A. Y es. The one-time CFA Program enrollment fee andthe registration fee for the Level I CFA exam needto be paid together.Q. I will be a final-year student at the time of sittingthe CFA exam. Is that acceptable?A. Y es. Your selected exam window must be 11months or fewer before your graduation month foryour bachelor’s degree or equivalent program. Youmust also have completed your degree programprior to the date of sitting for your Level II exam.Q. D o I need to submit my college degree ormarksheet at the time of registering for theexam?A. N o. CFA Institute does not ask for degree ormarksheet at the time of registration. However,CFA Institute may request proof of education(copy of diploma/degree, marksheet, any otherrelevant documents) to be submitted at anystage of your journey as a candidate or even afterbecoming a member to demonstrate entrancerequirements were met.Q. H ow much work experience do I need to sit forthe exam?A. T his depends on your enrollment requirementselection. If you select to enroll in CFA Programthrough the Bachelor’s Degree or Final-YearStudent requirement then no work experience isrequired to sit for the exam. However, if you electto enroll via the Professional Work Experiencerequirement, then a combination of 4,000 hoursof professional work experience and/or highereducation that was acquired over a minimum ofthree sequential years is required by the date18of registration. Please note that you must havefour years of investment related work experienceto apply to become a regular member of CFAInstitute and earn your CFA charter.Q. I have two years of work experience that I earnedwhile also studying for my bachelor’s degree fortwo years. Can I register as a candidate usingthe Professional Work Experience path?A. No. To qualify via the Professional WorkExperience requirement, your work experienceand education cannot overlap. This means theymay not have been accrued over the same periodof time.Q. I n case of violations, what are the actions thatare likely taken by CFA Institute?A. Failure to follow the guidelines by CFA Institutetowards entrance requirements or registrationrequirements for CFA Program may result incancellation of a current exam registration,withholding of exam results, voiding of pastexam results, and may lead to investigation anddisciplinary action by the Professional ConductProgram of CFA Institute.Q. I f you pass a level of the CFA Program, does yourexam result expire?A. No, exam results do not expire. You have unlimitedtime to complete the CFA Program.Q. D o you need to complete the CFA Program in acertain time period?A. You have unlimited time to complete the CFAProgram, although CFA Institute recommends notleaving it too long between each level or examre-take.Q. What qualifies as professional work experience forregular membership?A. Y our experience should involve evaluating or applyingfinancial, economic, and/or statistical data aspart of the investment decision-making process;supervising those who conduct; or teaching suchactivities.You must have at least 4,000 hours of experience,completed in a minimum of 36 months.Qualified hours must be directly related to theinvestment decision-making process or producinga work product that informs or adds value to thatprocess.Experience earned through full-time, part-time, orremote work arrangements—before, during, or afteryour participation in the CFA Program—can qualify.Q. I failed Level I of the CFA Program. Do I need to paythe registration fee again if I want to re-take theexam?A. Yes, you need to pay the registration fee again whenyou register.Q. Are any finance courses required for enrollment inthe CFA Program?A. N o, there are no prior finance courses required toenroll.For further information, visitwww.cfainstitute.org/programs/cfa19
CFA PROGRAM GUIDE CFA . It is a self study, three-level exam that tests the fundamentals of investment tools, company valuation, portfolio management, and wealth planning. Whether an individual is an aspiring or practicing investment professional, the CFA Program offers a way to move
VII: Responsibilities as a CFA Institute Member or CFA Candidate . A: Conduct as members/candidates in the CFA program . Do not cheat on, nor compromise the validity of, the CFA exam . B: Reference to CFA Institute, the CFA Designation, and the CFA Program . Do not make promotional promises or guarantees tied to the CFA designation. Do not:
CFA candidates come from different educational backgrounds and many walks of life. What is the Structure of the CFA Program? CFA Institute, the governing body that creates and administers the CFA exams, is headquartered in Charlottesville, Virginia. In July of each year, CFA Institute :
CFA Program curriculum with what CFA charterholders do daily on the job. We can safely say that the CFA Program curriculum today is the most up-to-date curriculum since it was established in 1963. CFA Program Level I curriculum was updated broadly in 2020 and the
examinations whose curriculum is covered by the CFA Program.1 The CFA Program The CFA program requires candidates to study for and pass three levels (I, II & III) of exams and meet other requirements, such as, 4 years of relevant work experience in order to earn a CFA Charter. Each level of the
The CFA program achieves this through the constant revision of its body of knowledge. In fact, in 1994 AIMR created a Global Body of Knowledge Task Force to conduct research to make sure that CFA tested material incorporated global knowledge standards (CFA Institute, n.d.). But what makes the CFA unique is that its body of
CFA recommendation: Adoption of the CFA Level 1 as the standard accreditation for all financial advisers in Australia. CFA Level I (Level I)1 is the first part of the three part CFA charter holder program. The Level I is a core component of the program
I neither work for nor represent CFA Institute nor CFA Society Toronto. DfD SME with Wiley for 11th Hour. This is 100% volunteer advice session based on my experience I passed CFA Levels I in 2001, II in 2002 & III in 2003 (Taipei) -all three exams on first attempt. I have done CFA training since 2010 from time to time. (Paris)
Preparing for the Test 5 Taking the Practice Tests Taking the TOEFL ITP Practice Tests will give you a good idea of what the actual test is like in terms of the types of questions you will be asked, and
