A chartered financial analyst (CFA) is a globally-recognized professional designation given by the CFA Institute, (formerly the AIMR (Association for Investment Management and Research)), that measures and certifies the competence and integrity of financial analysts. Candidates are required to pass three levels of exams covering areas, such as accounting, economics, ethics, money management, and security analysis.

From 1963 to the first half of 2022, more than two million candidates have sat for the Level I exam, with 291,500 candidates ultimately going on to pass the Level III exam, representing a weighted average completion rate of around 11%. In the last 10 years, the completion rate was slightly lower at 9.6%.he Basics of Becoming a Chartered Financial Analyst (CFA)

The CFA charter is one of the most respected designations in finance and is widely considered to be the gold standard in the field of investment analysis. The designation is handed out by the CFA Institute, which is a global nonprofit professional organization of more than 164,000 charter holders, portfolio managers, and other financial professionals in over 151 countries.2 Its stated mission is to promote and develop a high level of educational, ethical, and professional standards in the investment industry.

Before becoming a CFA charter holder, a candidate must meet one of the following educational requirements. The candidate must have four years of professional work experience, a bachelor's degree or be in the final year of the bachelor's degree program, or a combination of professional work experience and education totaling four years. For the undergraduate qualification, the bachelor's program must be completed before registering for the Level II exam. In addition to the educational requirement, the candidate must have an international passport, complete the assessment in English, meet the professional conduct admission criteria, and live in a participating country.3

After meeting the enrollment requirements, the candidate must pass all three levels of the CFA program in sequential order. The candidate must then become a member of the CFA Institute and pay annual dues. Finally, they must sign off annually that they are following the CFA Institute code of ethics and standards of professional conduct. Failure to adhere to the ethics and standards is grounds for possible lifetime revocation of the CFA charter.3

Passing the CFA Program exams requires strong discipline and an extensive amount of studying. The three exams can be taken once a year in June, with the exception of Level I, which can be taken in December as well.4

Although the exams can be taken as many times as needed, each exam typically requires candidates to study in excess of 300 hours.5 Given the considerable amount of time that must be spent studying, many candidates are deterred from continuing the CFA Program after failing one of the levels. To receive a charter, each candidate must pass all three exams and have four years of qualified work experience in investment decision-making.4

The exams are difficult. Only 43% passed the level exam in June 2018, which is similar to previous years.1 Having the right plan and the discipline to follow the plan are essential skills for passing all three exams. Notably, 2018 saw a record number of test takers, according to the CFA Institute. The Institute said more than 79,000 people sat its Level I test in June, an increase of 25% from 2017.6 The increase in test takers came primarily from Asia. The Institute now has test-taking centers in 43 countries around the world.7