Chartered Financial Analyst, more famously known as CFA®, is a designation conferred by The CFA® Institute, USA. All the details regarding the CFA program can be found on the website of the CFA Institute www.cfainstitute.org. For your convenience, we have sourced some of the most commonly sought information from their website here in this article. So, we recommend that you please visit the website for more details.
The CFA designation is a mark of distinction that is globally recognized by employers, investment professionals, and investors as the definitive standard by which to measure serious investment professionals. The CFA Program is a graduate-level self-study program that combines a broad-based curriculum of investment principles with professional conduct requirements. It is designed to prepare one for a wide range of investment specialties that apply in every market all over the world.
To apply for the CFA Program, one needs to login to their website and create an account online. To register for the exams, one needs to fill in the required information (related to personal details, work-experience and education background) at the time of creating the account and make an online payment for the respective level. Candidates are provided three deadlines to make the payment, with the fees increasing with each successive deadline. To know the exact deadlines and the fees payable, please visit the following link
ELIGIBILITY CRITERIA
Anyone who meets the following eligibility criteria can sit for the CFA exams:
Ø Have a bachelor's (or equivalent) degree
Ø Or be in the final year of your bachelor's degree program at the time of registration
Ø Or have four years of qualified, professional work experience
Ø Or have a combination of work and college experience that totals at least four years (Note: Summer, part-time, and internship positions do not qualify)
Ø If you initially enroll/register as a final year undergraduate student with a degree in progress, you may not register for the Level II exam until you have earned your degree, or obtained work experience that meets the program’s entrance requirements. At the time your degree is awarded, you may update your account education information to certify that your degree has been received.
Ø Effective 1 January 2011: Have a valid international travel passport (required for enrollment and exam registration).
THE CFA PROGRAM
The CFA Program is organized into three levels, each culminating in a six-hour exam comprising of a three hour morning session (9am to 12noon) followed by a two hour break and then the afternoon session of three hours (2pm to 5 pm). Completing the Program takes most candidates between two and five years (there is no limit to the number of times you can take each exam), but you can take as much time as you need.
CFA® Level 1
The Level I study program emphasizes tools and inputs, and includes an introduction to asset valuation, financial reporting and analysis, and portfolio management techniques. Level I exams are held twice a year, on the first Sunday (Saturday in some countries) of June and December.
The Level I exams include 240 total multiple choice questions, 120 on the morning session of the exam and 120 on the afternoon session. Each multiple choice question is free-standing (not dependent on other questions) and has three possible answers: A, B, and C. All questions are equally weighted and there is no penalty for guessing.
CFA® Level 2
The Level II study program emphasizes asset valuation, and includes applications of the tools and inputs (including economics, financial reporting and analysis, and quantitative methods) in asset valuation. The Level II exams are held only once a year, that is on the first Sunday (Saturday in some countries) of every June.
The Level II CFA exam consists of 20 item sets - 10 on the morning session of the exam and 10 on the afternoon session. Item sets are sometimes called 'mini-cases'. Each item set on the CFA exam consists of a vignette (or case statement) and six multiple choice items (questions). Each multiple choice question is free-standing (not dependent on other questions) and has three possible answers: A, B, and C. All questions are equally weighted and there is no penalty for guessing.
CFA® Level 3
The Level III study program emphasizes portfolio management, and includes strategies for applying the tools, inputs, and asset valuation models in managing equity, fixed income, and derivative investments for individuals and institutions. The Level III exams are held only once a year, that is on the first Sunday (Saturday in some countries) of every June.
The Level III exam uses the essay format in the morning, and the item set format, with 10 item sets, in the afternoon. The Level III essay exam is given in the morning session and has a maximum score of 180 points. The essay exam typically has 10-15 questions, and questions may have multiple parts. The points for each question and each question part are given in the exam.
CFA EXAM RESULTS
Levels I and II candidates receive their examination results at the end of July (June examination) and at the end of January (December examination); Level III candidates receive their results in mid-August. The results are mailed to you by the institute and can also be seen online by accessing your account the next day.
CFA CHARTER
To earn a CFA charter, you must:
Ø Have four years of qualified investment work experience,
Ø Become a member of CFA Institute,
Ø Pledge to adhere to the CFA Institute Code of Ethics and Standards of Professional Conduct,
Ø Apply for membership to a local CFA member society, and
Ø Complete the CFA Program.
For more information on FRM® please visit http://www.itsconcepts.com/frm.html
