CFA® Designation & What It Stands For
CFA Designation & What It Stands For
The CFA designation, short for Chartered Financial Analyst®, is one of the most respected credentials in the finance industry. Awarded by CFA Institute, it signals both deep financial knowledge and a high standard of ethics and professionalism.
If you earn the CFA designation, it means you have passed the rigorous CFA exam that consists of three levels rising in difficulty. You have also met work experience criteria and committed yourself to ongoing integrity in your professional life.
Aiming for the CFA Charter is a big challenge. If you want to know how to obtain a CFA designation, you definitely must know that the exams are demanding, the preparation time needs to be well organized and continuously monitored, plus growth mindset can surely help you successfully study for the CFA exam.
Top 5 Things to Know about CFA Designation
- CFA stands for Chartered Financial Analyst®.
- CFA designation is a globally respected title in the world of finance.
- CFA designation is awarded by CFA Institute to those who pass all 3 levels of the CFA exam and meet other specific requirements.
- The CFA Charter is seen as a mark of excellence and integrity by employers and clients worldwide.
- Becoming a CFA Charterholder opens up career opportunities in investment analysis, portfolio management, private wealth, and more.
Top 5 Things to Know about CFA Exam
- The CFA exam is a three-level exam. CFA exam difficulty increases with each level.
- Passing all three levels of the CFA exam is required to earn the CFA designation.
- You should plan for at least 300 hours of study per level. That's what CFA Institute recommends and CFA candidates confirm.
- The exam is computer-based and offered in designated exam windows, four times a year for level 1, three times a year for level 2, and two times a year for level 3.
- The CFA exam syllabus is extensive and updated regularly. It's 10 topics at level 1 and level 2, and 7 topis plus one out of three specialized pathways at level 3.
Some CFA Designation Insights, 1963-2026
- The CFA designation is issued by CFA Institute, a US-based organization that introduced it back in 1963.
- The CFA Charter is an internationally recognized certification valued in various investment and finance sectors.
- Once you earn the CFA Charter, you can use the "CFA" title after your name – a powerful addition to your CV.
- Even passing one level of the CFA exam is considered a major achievement.
- The prestige of the CFA designation comes from the difficulty and depth of the exam.
- The CFA exam has 3 levels and requires serious dedication and planning for your CFA prep.
- Most candidates spend around 300+ hours studying per level.
- It’s not uncommon to retake a level. In fact, passing all 3 levels on your first attempt is rare.
- On average, the pass rates for levels 1, 2, and 3 are 41%, 46%, and 51%, respectively.
- Passing the CFA exam involves both hard work and smart study strategies.
- In 2021, the CFA exam moved from paper-based to computer-based testing.
- There are now 4 CFA exam windows a year: February, May, August, and November.
- You must register for your CFA exam and then schedule your specific exam date within your chosen exam window.
- The CFA exam registration process includes fees. Early registration saves money.
- CFA Program scholarships are available and can reduce exam costs significantly.
- Each CFA exam level has its own curriculum with a unique focus:
- Level 1: Conceptual understanding of tools and principles.
- Level 2: Analytical application and valuation.
- Level 3: Evaluation, justification, and specialization.
- Level 3 offers three specialized pathways: Portfolio Management, Private Markets, or Private Wealth.
- Ethical and Professional Standards is one of the major topics at all levels.
- The CFA Program curriculum adapts yearly to reflect changes in the financial industry.
- As of 2024, CFA Practical Skills Modules (PSMs) have been added for more real-world experience.
- You’ll need an approved financial calculator to take your CFA exam. It's either a HP or TI BA calculator for the CFA exam.
- Digital badges are now awarded for passing levels 1 and 2 – also offered retrospectively.
- Results come about 5-7 weeks after level 1 or 2, and 6-8 weeks for level 3.
- The minimum passing score (MPS) is not published as a percentage score but starting with the 2025 CFA exams the MPS is given as a scale score: 1600 for level 1, 2600 for level 2, and 3600 for level 3.
- Ethics results can affect your final outcome – there’s the so-called ethics adjustment.
- You don’t need to ace every topic – your overall score is what counts.
- The exam gets more challenging with each level, especially level 3 is highly demanding with its written essay sections.
- The CFA exam is not just about passing – it's about proving long-term professional dedication.
- After passing all 3 levels, you still need to meet work experience requirements to become a CFA Charterholder.
- You’ll also need references and to submit a formal application to CFA Institute.
- CFA Charterholder takes time – but once you’re there, it’s for life.
- The CFA Charter shows you’re not only knowledgeable, but also disciplined and ethical.
- Whether you’re aiming for level 1 or the full Charter, we’re here to help you navigate the way.
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PUBLISHED: July 9, 2025
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