HOW TO BECOME A CFA CHARTER HOLDER?


The professional designation of Chartered Financial Analyst (CFA) is becoming a significant requirement for a career in investment analysis and/or portfolio management. For that reason, this section presents the history and objectives of the Association for Investment Management and Research (AIMR®) and general guidelines for acquiring the CFA designation. If you are interested in the program, you can write or email AIMR for more information.

The CFA examinations were first offered in 1963 by the Institute of Chartered Financial Analysts (ICFA) which was formed in 1959 to enhance the professionalism of those involved in various aspects of the investment decision-making process and to recognize those who achieve a high level of professionalism. The ICFA combined with the Financial Analysts Federation in 1990 to form AIMR.

AIMR’s mission is to advance the interests of the global investment community by establishing and maintaining the highest standards of education and professional practice. As applied to the CFA program, AIMR’s focus is:

• To develop and keep current a “body of knowledge” applicable to the investment decision-making process. The principal components of this knowledge are financial accounting, economics, both debt and equity securities analysis, portfolio management, ethical and professional standards, and quantitative techniques.

• To administer a study and examination program for eligible candidates, the primary objectives of which are to assist the candidate in mastering and applying the body of knowledge and to test the candidate’s competency in the knowledge gained.

• To award the professional CFA designation to those candidates who have passed three examination levels (encompassing a total of 18 hours of testing over a minimum of three years), who meet stipulated standards of professional conduct, and who otherwise are eligible for membership in AIMR.

• AIMR also provides a useful and informative program of continuing education through seminars, publications, and other formats that enable members, candidates, and others in the investment constituency to be more aware of and to better utilize the changing and expanding body of knowledge.

• Importantly, AIMR also sponsors and enforces a Code of Ethics and Standards of Professional Conduct that apply to enrolled candidates and to all members.


To enter the CFA program an applicant must have a bachelor’s degree (or the equivalent work experience). An applicant must receive a bachelor’s degree no later than December 31 of the current exam year in order to qualify for entrance.

A candidate may sit for all three examinations without having had investment experience per se or having joined a member society or chapter of AIMr. However, after passing the three examination levels, the

CFA Charter will not be awarded unless or until the candidate:

• has at least three years of experience as a financial analyst, which is defined as a person who has spent and/or is spending a substantial portion of his/her professional time collecting, evaluating, and applying financial, economic, and related data to the investment decision-making process; and

• has applied for membership or is a member of an affiliated member society or chapter of AIMR, if such a society/chapter exists within 50 miles of the candidate’s principal place of business.

The curriculum of the CFA study program covers:
1. Ethical and Professional Standards
2. Quantitative Techniques
3. Economics
4. Financial Statement Analysis
5. Corporate Finance
6. Analysis of Debt Investments
7. Analysis of Equity Investments
8. Analysis of Derivatives
9. Analysis of Alternative Investments
10. Portfolio Management
11. PERFORMANCE MEASUREMENT AND PRESENTATION

Members and candidates are typically employed in the investment field. From 1963 to May 2002, over 50,000 charters have been awarded. More than 100,000 individuals were enrolled in the 2002 CFA Candidate Program. If you are interested in learning more about the CFA Program, AIMR has a booklet that describes the program and includes an application form.

The address is: AIMR, Attn: Information Central, PO Box 3668, Charlottesville, Virginia, 22903, USA. You may also request a booklet by email to info@aimr.org.

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