What is CFA and requirement for candidates?

What is CFA and requirement for candidates

Becoming a CFA charterholder is a significant moment in the lives of many finance professionals. The CFA course structure has been designed in a way that the candidate gets a great understanding of portfolio management and investment analysis. The CFA institute conducts this exam and holds three subsequent levels to test the candidates on their aptitude and knowledge. Every candidate needs to go through some defined procedure in order to become a charterholder.

How to earn the CFA charter? 

In order to earn the CFA charter, the candidate has to go through a set of procedures:

  • Pass CFA exams – There are 3 levels of exams that the candidates need to pass. The levels increase in difficulty. However, it has been noticed that the passing rate is inversely proportional to the level of difficulty. You need to clear all the levels.
  • Have the qualified work experience – You can complete the work experience before the CFA program, during the program, or once you are done with it. The experience must be in line with the process of making investment decisions. You can even be involved in a work product that adds value to the process.
  • Submit reference letters – You will need to provide 2-3 professional references in support of your membership application. The references would need to comment on your work experience and your professional character.
  • Apply to become a charterholder – Finally, you need to apply to become a member of the CFA Institute. Once the application is approved and you join the Institute, you earn the CFA Charter.

If you intend to become a member, you should start with the CFA level 1 subjects soon.

What is the enrollment criteria? 

In order to enrol for the CFA program, you need to meet the following criteria:

You need to have complete your Bachelor’s Degree or an equivalent program from your university. You could even be a final year student in the program on the date of enrollment. You need to complete the degree program before registering for Level II. You need to have a combination of 4 years of work experience and college education before registering for Level I. It is a good idea to get regular training from CFA classes.

You will need to have an internal travel passport in order to be applicable for the exam.

The exams will be conducted in English. So you need to have a good command over the language.

The candidates need to complete a Professional Conduct Statement form to attest that they comply with the criteria.

Last but not least, there are countries which the CFA Institute cannot work with. You need to check the sanctions for your country.

The CFA program is instrumental in building a career in investment banking and managing portfolios. Compared to an MBA program it costs much less and is very focused on the field. With some assistance from CFA classes in Mumbai, you can earn the charter and become a charterholder.