CFA Certification Requirements: Your Complete Guide

The CFA Exam Explained: What You Need to Know

A Chartered Financial Analyst (CFA) designation is a globally recognized professional certification provided by the CFA Institute, a prestigious organization that evaluates and verifies the expertise and ethics of financial professionals. To earn the CFA designation, candidates must successfully complete three levels of rigorous exams that cover topics such as financial accounting, macroeconomics, professional ethics, portfolio management, and investment analysis.

From 1963 to November 2023, over 3.7 million individuals attempted the CFA exam, with an overall pass rate of 45%. Between 2014 and 2023, the average pass rate over a 10-year period was 43%.

The CFA charter is one of the most prestigious certifications in finance and is widely regarded as the gold standard in investment analysis. To earn the CFA designation, candidates must successfully complete three challenging exams, hold a bachelor’s degree, and accumulate at least 4,000 hours of relevant work experience over a minimum of three years. Passing the CFA Program exams demands strong discipline and a significant amount of preparation.

There are over 200,000 CFA charter holders globally, spanning 164 countries. The certification is awarded by the CFA Institute, which operates 11 offices worldwide and is supported by 160 local member organizations.

Everything You Need to Know About Becoming a CFA

The CFA designation is one of the most prestigious credentials in finance and is often regarded as the benchmark of excellence in the field of investment analysis.

This certification is awarded by the CFA Institute, a global nonprofit organization that represents over 200,000 charterholders, portfolio managers, and financial experts across 164 countries and 160 local member societies.

The CFA designation aligns with the core mission of the CFA Institute, which is to foster and uphold high standards of education, ethics, and professionalism within the investment sector.

CFA exam structure

Successfully passing the CFA Program exams demands strong dedication and significant study efforts. The Level I exam is offered four times annually, in February, May, August, and November. The Level II exam is available three times a year, in May, August, and November, while the Level III exam is administered twice a year in February and August.

Although candidates can attempt the exams multiple times, each exam generally requires more than 300 hours of preparation. Due to the substantial time commitment involved, many candidates are discouraged from continuing the CFA Program after failing one of the levels.

These exams are challenging. Historically, only 45% of candidates have passed the exams between 1963 and 2023. Developing an effective study plan and maintaining the discipline to adhere to it are crucial for passing all three levels. Notably, 2019 had the highest number of test-takers, but participation has not yet recovered from the sharp drop experienced during the COVID-19 pandemic.

The CFA Institute operates over 400 test centers globally, with additional locations being established in Asia to meet growing demand in the region.

CFA exam levels

Level I CFA Exam Structure 

How Long Is the CFA Level I Exam? Get the Complete BreakdownH3

The Level I test is composed of 180 multiple-choice questions, divided into two 135-minute segments (session durations are approximate). An optional break is available between these segments.

• First segment (2 hours, 15 minutes( :90 multiple-choice questions
• Second segment (2 hours, 15 minutes(:90 multiple-choice questions

Essential CFA Level I Study Topics for 2024      

topics	Number of questions	Exam Weight
Ethical and Professional Standards	27-36	15-20%
Quantitative Methods	11-16	6-9%
Economics	11-16	6-9%
Financial Statement Analysis	20-25	11-14%
Corporate Issuers	11-16	6-9%
Fixed Income	20-25	11-14%
Portfolio Management	15-21	8-12%
Equity Investments	20-25	11-14%
Derivatives	9-14	5-8%
Alternative Investments	13-18	7-10%

 

Level II CFA Exam Structure 

The Level II exam concentrates on the valuation of different asset classes and highlights the practical use of investment tools and principles in real-world scenarios.

Questions related to Financial Reporting and Analysis generally rely on International Financial Reporting Standards (IFRS). The exam consists of 22 item sets (short case studies) featuring 88 multiple-choice questions (110 questions overall).

The Level II exam lasts 4 hours and 24 minutes, divided into two equal sessions of 2 hours and 12 minutes, with an optional break in between.

During the exam, candidates might need support from invigilators. Invigilators will arrive at workstations promptly to provide assistance. If possible, we encourage candidates to continue working on the test while waiting for invigilator support. The exam developers have structured the test to accommodate minor interruptions or delays, ensuring candidates still have sufficient time to answer all questions effectively.

Essential CFA Level II Study Topics for 2025

Topic	Exam Weight
Quantitative Methods	5-10%
Economics	5-10%
Financial Reporting and Analysis	10-15%
Corporate Issuers	5-10%
Equity Valuation	10-15%
Fixed Income	10-15%
Derivatives	5-10%
Alternative Investments	5-10%
Portfolio Management	10-15%
Ethical and Professional Standards	10-15%

 

Level III CFA Exam Structure 

The Level III test emphasizes efficient wealth management and portfolio strategy. It requires candidates to integrate all the concepts and analytical techniques gained from the full curriculum.

The test structure includes multiple sections with 11 item sets and 11 written response questions to be completed within four hours and 24 minutes. The handwritten responses are manually graded.

Essential CFA Level III Study Topics for 2025

Topic	Exam Weight
Asset Allocation	15-20%
Portfolio Construction	15-20%
Performance Measurement	5-10%
Derivatives and Risk Management	10-15%
Ethical and Professional Standards	10-15%
Pathways	30-35%

 

CFA Exam Pass Rates: CFA exam results release date 

You will receive a “pass” or “fail” result along with insights on your performance across different topic areas. (Level III candidates who pass will not be provided with detailed feedback.) Candidates can refer to the CFA Institute exam performance guide to better understand their results report. CFA Institute will inform you once your official exam results are released. After receiving their CFA exam scores, candidates may sign up for the next test. We encourage those who don’t pass to leverage the result data to refine their study approach and retake the exam in the future. Candidates can take as much time as needed before registering for the subsequent exam.

CFA Pass Rates by Level 

The table below shows the pass rates for Level I to Level III exams of the CFA Program.

CFA Level Exam	Pass Rate
CFA Level I	February 2024 =44% May 2024 – 46%
CFA Level II	May 2024 = 59%
CFA Level III	February 2024 = 49%

CFA Exam Results Timeline

Exam results will be accessible approximately 5 to 8 weeks after the end of an exam period, depending on the exam level.

Once all testing is completed and the exam period closes, the CFA Institute starts a comprehensive review of exam questions and candidate performance to determine the minimum passing score (MPS) that reflects fundamental proficiency in the subject. For Level III evaluations, hundreds of CFA charterholders will take part in a written response grading event. The Board of Governors will then meet to approve the MPS. Thorough quality control measures and data review processes are conducted to ensure results are accurately reported to all candidates. Candidates will receive regular updates on the status of their exam results, and additional details will be posted on this page as they become available.

Individual exam results are disclosed only to the candidate and are never shared with third parties; however, lists of successful candidates are provided to organizations for membership purposes.

Detailed exam scores and responses to exam questions are considered measurement data and are part of a candidate’s testing record, which is exclusively owned by the CFA Institute. This data is not shared with candidates.

 

After each exam administration, the CFA Institute Board of Governors determines the minimum passing score (MPS) for each level. This approach ensures fairness for all candidates by accounting for the difficulty of each test when establishing the MPS. The CFA Institute does not disclose the MPS or individual candidate scores.

Exam results are accessible for about one year after the test date. After this period, candidates can verify their status with the CFA Program by generating and downloading a verification letter from the Verification Letter section in their Account Profile. The verification letter will confirm whether the exam result is a “pass” or “fail,” but detailed performance summaries by topic area will not be provided.

CFA exam registration process 

CFA Level I Exam Registration Procedure 

To qualify for the Level I CFA exam, you must fulfill one of the following three pathways:

1. Hold a Bachelor’s Degree: Equivalent programs are also acceptable, and your college or university can confirm their comparability.
2. Be in Your Final Year: You can sit for the Level I CFA exam up to 11 months before your planned graduation date for your bachelor’s degree or an equivalent program. However, you must complete your degree before attempting the Level II exam.
3. Have 4,000 Hours of Professional Experience and/or Higher Education: This experience and/or education must be accumulated over at least three consecutive years, and they cannot overlap.

 

2. Provide Valid Identification

• You must possess a valid international travel passport to enroll in and register for the CFA exam.

3. Complete the Professional Conduct Statement

• Fill out the CFA Professional Conduct Statement and affirm your adherence to this requirement.

4. Register for the CFA Program and the Exam

• The CFA exam registration process involves two steps. First, you need to enroll for the CFA exam on the CFA Institute website and pay the one-time $450 enrollment fee along with the exam registration fee ($700 for early registration or $1,000 for standard registration). Second, you must schedule your exam.

5. Schedule Your CFA Exam

• After enrolling in the CFA Program and registering for your Level I exam, you must schedule your exam before the scheduling deadline. This can be done through your CFA Program account. If you need to change your exam date within your exam window, you have roughly two months after the scheduling deadline to do so.

You can only schedule one exam at a time, and there is no minimum timeframe required to complete all three levels (most CFA candidates take 4-5 years to pass all three levels of the CFA exam).

 CFA Level II Exam Registration Procedure 

To successfully register for the CFA Level II exam, follow these 4 essential steps:

1. Pass Level I and Fulfill Education and Experience Criteria

• You must pass Level I of the CFA exam to qualify for the Level II exam. If you were eligible for Level I by being in your final year of study, you must complete your degree before taking the Level II exam.

 

2. Provide Valid Identification

• Ensure you have a current international passport to register for the CFA exam.

3. Complete Your Exam Registration

• Registering for the Level II CFA exam involves two steps. First, you must sign up for the exam and pay the registration fee ($700 for early registration or $1,000 for standard registration). Second, you need to schedule your exam slot.

 

4. Schedule Your CFA Exam

• After registering for your Level II exam period, you must schedule your exam by the specified deadline. This can be done through your CFA Program dashboard. If you need to change your exam date within your exam window, you have about two months after the scheduling deadline to make adjustments.

 

CFA Level III Exam Registration Steps

Follow these 4 essential steps to successfully register for the CFA Level III exam:

1. Complete Level II and Fulfill Education and Experience Criteria

• To qualify for the Level III exam, you must pass Level II of the CFA exams. Additionally, you need to meet the minimum educational and/or professional experience requirements set for the Level I and Level II exams.

 

2. Provide Valid Identification

• A valid international travel passport is required to register for the CFA exam.

3. Register for the Exam

• The registration process for the Level III CFA exam consists of two stages. First, you must register for the exam and pay the registration fee ($700 for early registration or $1,000 for standard registration). Second, you need to schedule your exam slot.

4. Schedule Your CFA Exam

• Once you have registered for your Level III exam window, you must schedule your exam within the provided deadline. This can be done through your CFA Program Dashboard. If you need to adjust your exam date within the scheduled window, you have approximately two months after the scheduling deadline to make changes.

 

CFA exam registration cost

Registration Type	Fee	Description
Early Bird Registration	700$	Applies if you register before the early registration deadline.
Regular Registration	1000$	Applies after the early registration period has ended.
Rescheduling Fee	250$	Applies if you need to reschedule your exam within your exam window.

 

Tips to Help You Pass the CFA Exam by Level

Level I: Foundational Knowledge and Skills

1. Master the Curriculum:

• Focus on comprehending the CFA Institute’s study materials and resources.
• Rely heavily on the CFA Institute’s textbooks and practice questions.

 

2. Create a Study Plan:

• Develop a comprehensive study timetable that allocates adequate time for each subject.
• Maintain consistency and adhere to your study schedule.

 

3. Emphasize Core Topics:

• Prioritize high-weight topics such as Ethics, Quantitative Methods, and Financial Reporting.
• Ensure you understand essential formulas and concepts.

 

4. Practice with Questions:

• Frequently engage with mock exams and practice questions to gauge your understanding.
• Utilize CFA Institute’s online question banks for practice.

 

5. Review and Revise:

• Allocate time for revision to consolidate your knowledge and address weaker areas.
• Summarize key concepts into brief notes for quick revision.

 

Level II: Application and Analytical Skills

1. Enhance Your Understanding:

• Dive deeply into the curriculum, focusing on intricate financial concepts and their applications.
• Pay special attention to vignette-based questions and learn how to analyze them.

 

2. Engage with Case Studies:

• Practice with case studies and past exams to familiarize yourself with the format and question styles.
• Review previous CFA Level II exams to identify key patterns and focus areas.

 

3. Prioritize Asset Valuation:

• Focus on asset valuation topics such as equity, fixed income, and derivatives.
• Understand and apply various valuation techniques effectively.

 

4. Utilize Study Resources:

• Make use of CFA Institute’s study materials and supplementary review courses for extra practice.
• Join study groups or forums to discuss challenging topics.

 

5. Manage Your Time:

• Practice time management during mock exams to ensure you can answer all questions within the time limit.

Level III: Integration and Application

1. Understand the Exam Format:

• Get accustomed to the essay format and item set questions of the Level III exam.
• Practice writing concise and well-organized responses for essay questions.

 

2. Focus on Portfolio Management:

• Pay particular attention to portfolio management and wealth planning, which are heavily tested.
• Familiarize yourself with CFA Institute’s guidelines for portfolio construction and management.

3. Review the Curriculum Thoroughly:

• Conduct a detailed review of the CFA Institute’s curriculum, especially in Institutional and Private Wealth Management.
• -Focus on integrating and synthesizing information from various topics.

 

4. Practice Essays and Item Sets:

• Regularly write practice essays and solve item sets to enhance your ability to apply concepts.
• Use CFA Institute’s mock exams and previous papers for practice.

 

5. Strategic Revision:

• Set aside time for revising key concepts and strategies for tackling complex questions.
• Develop a revision strategy that includes reviewing notes and practicing questions.

By focusing on these strategies, you can enhance your preparation for each level of the CFA exam and improve your chances of passing successfully.