What you need to know about the CFA Exam

1. General information

What is the Chartered Financial Analyst Certification?

The CFA (Chartered Financial Analyst) exam is a universally recognized professional credential offered by the CFA Institute. It’s highly regarded in the finance industry and focuses on different areas such as investment management, financial analysis, etc.

What are the levels ?

There are 3 levels to the CFA exam:

Level 1: Focuses on entry-level or basic knowledge around the 10 topics.

Level 2: Focuses on the application of investment valuation concepts and analysis.

Level 3: Focuses on portfolio management and wealth planning.

What do you need to become a chartered financial analyst?

Pass the CFA exams (all levels)
Obtain appropriate work experience.
Fulfill the prerequisites for work experience (4 years) before, during, or after joining the CFA Program. Your background must be directly related to making decisions about investments or creating work products that support or enhance the decision-making process.
Send in your recommendation letters: You will be required to submit two or three professional references in support of your membership application. The references are to attest to your professional demeanor and job history.
Register as a Charterholder : Apply to join the CFA Institute as a regular member. The CFA charter will be awarded to you if your application is accepted, and you become a member of the CFA Institute.

How many Charterholers are there in the world?

In more than 160 markets, there are more than 190,000 CFA charterholders globally. The CFA Institute has 160 local organizations and nine offices across the globe.

How many CFA candidates are there in the world?

The global network of investment professionals, CFA Institute, reports that 21,116 applicants from throughout the globe took the Level I CFA® Program exam in May 2024. Historical number of candidates and pass rates for each level since the inception of the CFA Exam in 1963.

https://www.cfainstitute.org/-/media/documents/support/programs/cfa/cfa-exam-results-since-19

63.pdf

2. CFA Exam Format

What is the exam format for each level?

Level 1 : Multiple choice questions

180 questions are split between two 135-minute sessions. There is an optional break between sessions.
1 morning Sessions: 2 hours, 15 minutes
1 afternoon Session : 2 hours, 15 minutes

What are the subjects covered and their weights?

Ethical and professional standards 15-20%
Quantitative methods 6-9%
Economics 6-9%
Financial statement analysis 11-14%
Corporate issuers 6-9%
Portfolio management 8-12%
Equity investments 11-14%
Fixed income 11-14%
Derivatives 5-8%
Alternative investments 7-10%

Level 2: 22 item sets comprised of vignettes (a detailed scenario or case study) with 88 accompanying multiple-choice questions.

4 hours and 24 minutes, split into two equal sessions of 2 hours and 12 minutes, with an optional break in-between.

The CFA exam level 2 covers 10 topics:

Ethical and professional standards 10-15%
Quantitative methods 5-10%
Economics 5-10%
Financial statement analysis 10-15%
Corporate issuers 5-10%
Fixed income 10-15%
Portfolio management 10-15%
Equity valuation 10-15%
Derivatives investment 5-10%
Alternative investments 5-10%

Level 3 : Item sets and constructed response (essay) sets

4 hours and 24 minutes, split into two equal sessions of 2 hours and 12 minutes, with an optional break in-between.

The CFA exam level 3 covers topics:

Economics 5-10%
Portfolio management 35-40%
Derivatives 5-10%
Alternative investments 5-10%
Fixed income 15-20%
Equity investments 10-15%
Ethical and professional standards 10-15%

As part of CFAI's evolution, Level 3 applicants will be given three versions of the test, one for each path: Portfolio Management, Private Wealth, and Private Markets. Each version will include the basic curriculum as well as pathway-specific content. Candidates can select the version that best matches their interests and goals. The adjustments to specialized pathways will go into effect in 2025.

What is the method of grading ?

The CFA exam uses a pass/fail grading system. There is no set passing score, it is determined by the CFA institute based on the performance of all candidates and a standard-setting process.

3. Requirements / Eligibility

What are the CFA exam requirements? (education and profession wise)

Education: A bachelor’s degree or equivalent or be in your final year of the bachelor’s degree program.
Professional Experience: 4 years of professional experience.

In sum, CFA Level 1 requirements :
- One of these :
-> Two years remaining in Bachelor’s Degree
-> Undergraduate Student
-> Professional Work Experience
- An International Travel Passport
- English Language Proficiency
CFA Level 2 requirements :
You must have passed the Level 1 exam and completed your bachelor's degree.
CFA Level 3 requirements :
You must have passed the CFA Level 2 exam.

4. Registration, important dates and fees

When is the CFA exam ? (schedule and deadline)

CFA exam dates for 2024/2025:

Deadline to register with the invoice option: The invoice payment option for the CFA exam allows candidates to register for the exam and receive an invoice for the payment instead of paying immediately with a credit card. This option allows candidates to generate an invoice that details the registration fees, which can then be paid by the candidate or their sponsor within a specified period.

Scheduling Deadline: It is the final date by which candidates must select and confirm their specific exam date, time, and location within their chosen exam window. Scheduling is mandatory to secure a spot for the exam, and failure to schedule by the deadline will result in the loss of the registration fee and the inability to sit for the exam.

Rescheduling Deadline: It is the last date by which candidates can change their previously scheduled exam date, time, or location within the same exam window. This option allows flexibility for candidates who need to adjust their exam appointments due to unforeseen circumstances. To reschedule, candidates must pay a rescheduling fee of US$250.

What is the registration process?

Visit the CFA institute Website, create an account, choose the exam level you wish to take, select the testing window, pay the registration fees (then schedule your exam date)

How much does the CFA cost?

The registration fee for the CFA Program exam is USD 990 for early registration and USD 1,340 for standard registration. The one-time enrollment fee is USD 350.

5. Exam Day

What to bring ? Are there rules to follow?

On the day of the exam you need to bring :

Required identification (valid international travel passport)
CFA Institute-approved calculator (BA II Plus or HP 12C) elaborate
Exam admission ticket

It’s not allowed to bring :

Food or drinks that aren't water
A wallet, or cash purse
Any type of baggage, such as clear bags, purses, handbags, tote bags, briefcases, carry-cases, passport covers, or cases for glasses
Study aids such as study guides, notes, unapproved papers, and textbooks
Writing instruments and scratch paper (not only the kind the test facility gives you) or calculator manuals
Smartphones, tablets, laptops, cameras, headphones, wearable technology (fitbit® and other fitness trackers), smart watches, and any other Bluetooth®-enabled, remote communication, or photo equipment
Any kind of timer or desk clock, including wristwatches
Any type of weaponry Jewelry (apart from engagement or wedding rings), elaborate hairpins, headbands, combs, barrettes, tie clips, or cufflinks

What to do when having special needs ?

You can request accommodations by submitting an application to the CFA Institute, along with documentation of your condition. It may include extra time, a separate testing room….

What are the CFA exam centers?

https://www.cfainstitute.org/-/media/documents/form/Cities-LIst-Jan23.pdf

6. CFA Exam Results

When are the results?

What to do when not passing?

Results for each level are usually released within 60 days for Level 1 and 2, and within 90 days for Level 3. Results are sent via email and can be accessed on the CFA Institute website.
In case you don’t pass, you can retake the exam 6 months later. A candidate can take up to 7 attempts per level.

PASS RATES :https://finance.uworld.com/cfa/pass-rates-scores/ - https://300hours.com/cfa-pass-rates/
Create similar excel chart, using this historical pass rates : https://www.cfainstitute.org/-/media/documents/support/programs/cfa/cfa-exam-results-since-1963.pdf

How is the CFA grading

You receive grades per topic (screenshot of results). https://300hours.com/how-to-interpret-cfa-results/

1. Minimum Passing Score (MPS) undisclosed

The CFA Institute sets a score you need to pass, but they don't share this exact score with candidates.

2. Performance Bands

For Level I and II, your performance is grouped into three categories for each topic:

Below 50%: Needs improvement
50%-70%: Average
Above 70%: Strong

3. Level III Grading

Level III has both multiple-choice and essay sections. Essays are graded by experts, and your final score is a mix of both sections.

4. Percentiles

90th Percentile: You scored better than 90% of candidates.
10th Percentile: You scored better than 10% of candidates.
These percentiles help you see how you did compared to others, but they don’t affect whether you pass or fail.

5. Pass/Fail Result

Your final result is simply "Pass" or "Fail." If you fail, you'll get feedback on how close you were to passing.

7. CFA Schlarships

Source 1 (UWORLD): https://finance.uworld.com/cfa/cfa-exam-scholarships/
Source 2 (CFA INSTITUTE): https://www.cfainstitute.org/en/programs/cfa/scholarships
Source 3 (300HOURS): https://300hours.com/cfa-scholarships/
CFA scholarships.xlsx
CFA Access Scholarship 2024 ( What to EXACTLY write in the Scholarship Essay)
New Changes to the CFA Scholarship Application Process

8. CFA Calculator

There are just two calculator models that can be used for CFA® Program exams:

BA II Plus from Texas Instruments (includes BA II Plus Professional)
Hewlett Packard 12C (which includes the HP 12C Prestige, HP 12C Platinum, HP 12C Platinum 25th anniversary edition, and HP 12C 30th anniversary edition)

On exam day, bring the authorized calculator with you. Exam center calculators are not available for checkout. During the test, you are not allowed to share or borrow a calculator from another candidate.

The examination will begin with a check of your calculator. You will be prompted to clear your calculator's memory after inspection. Your exam results will be nullified if you use or possess an unlicensed calculator while the exam is being administered.

You may carry a backup calculator, as long as it is one of the allowed models. The manuals for all calculators you bring must be left at home.

The CFA test calculator policy permits the following extra calculator-related items:

Calculator has keystroke card covers.
Extra batteries that are loose
A tiny screwdriver to change the batteries in your BA II Plus