If you want to stand out in the world of finance, the chartered financial analyst designation is one of the most respected credentials you can earn. Whether you dream of working in investment management or wealth planning, becoming a CFA charterholder can open doors to rewarding roles and higher earning potential.
In this guide, Wealth Professional Canada will walk you through everything you need to know about the CFA program. We'll discuss the steps to become a CFA charterholder as well as what you can expect in terms of career prospects and salary.
A chartered financial analyst or CFA is a professional who has demonstrated advanced investment analysis skills and real-world portfolio management expertise. You earn this designation by:
The CFA program is recognized globally and is considered the gold standard in the investment industry.
The CFA designation shows employers and clients that you have the knowledge and commitment to thrive in the complex and ever-changing world of finance.
According to CFA Institute's website, more than 200,000 professionals worldwide have earned the CFA Charter, joining a network known for ethics and professionalism in investment analysis.
Watch this video to know more about this designation:
As the financial industry becomes more competitive, more professionals are choosing to earn the CFA designation. The number of people holding the CFA title has grown noticeably in the past few years.
There are three steps that you should take to become a CFA:
Your journey to becoming a CFA charterholder starts with the CFA program. You must register and enroll in the program, then pass all three exam levels:
In addition to the exams, you must complete Practical Skills Modules (PSMs) at each level. These modules help you apply your knowledge to real-world scenarios you might face in the investment industry. Each PSM takes 10 to 20 hours to complete and uses:
You can access the CFA program curriculum, PSMs, and other study resources through the Learning Ecosystem. This digital tool offers recommendations and activities to help you focus on the areas where you need the most improvement.
In 2023, the CFA Institute announced some changes to its program such as specialized pathways and additional practice materials.
To become a CFA charterholder, you need at least 4,000 hours of qualifying work experience, completed over a minimum of 36 months. You can gain this experience before, during, or after you participate in the CFA program.
Your work experience must be directly involved with the investment decision-making process or produce a work product that informs or adds value to that process. This requirement ensures you have practical, hands-on experience in the field. You can use the work experience assessment to check if your experience qualifies.
After passing your exams and completing your work experience, you must become a regular member of the CFA Institute. Membership allows you to use the CFA designation and gives you access to exclusive benefits.
As part of your application, you need to submit professional references. If one of your references is an active regular member of the local society you are applying to, you can submit two references. If not, you must submit three references. You will also need to provide documentation of your 4,000 hours of qualifying work experience.
There are other membership options for those who have not completed the CFA program, but you cannot use the CFA designation unless you meet all the requirements above.
To enroll in the CFA program and register for the Level I exam, you must meet one of the following:
Professional work experience does not need to be investment related. Paid internships and work in your own or a family business qualify if they are professional and paid.
CFA program exams are offered four times a year at over 400 locations worldwide. You can take the exam a maximum of twice each calendar year, but not in consecutive windows or windows within six months of each other.
The total cost to complete all three levels of the CFA program and become a Charterholder ranges from USD3,520 to USD4,600, depending on when you register. All fees are paid in US dollars.
If you need to reschedule your exam appointment within your exam window, a USD250 rescheduling fee applies. Local taxes might also be added during the payment process.
One of the main reasons many professionals pursue the CFA designation is the potential for higher earnings. The average base salaries of CFA Institute members and CFA charterholders increased at a greater rate year over year than the rate of increase for the general market. This is according to the CFA Institute Compensation Study for 2024.
The average total compensation for CFA charterholders across all job functions is USD267,000. This figure reflects the global average, but salaries in Canada are competitive and often higher than those for non-charterholders in similar roles. Compensation varies depending on your role, experience, and the type of organization you work for.
CFA charterholders are in demand for executive positions, with 90 percent of hiring managers preferring them for these roles. The CFA credential can help you qualify for senior and executive positions in investment management, risk management, asset management, and more.
Earning the CFA designation opens up a wide range of career opportunities in the financial sector. As a CFA charterholder, you can pursue roles in:
There are three main job types that CFA charterholders often pursue:
The CFA program curriculum is designed to give you the advanced investment analysis and portfolio management skills that investment firms expect. In addition to these career paths, becoming a CFA charterholder offers several benefits:
It usually takes three to four years to complete all three levels of the CFA program. This timeline includes the recommended study time of about 300 hours per level.
You also need to complete at least 4,000 hours of relevant work experience over a minimum of 36 months. You can gain this experience while you study for your exams.
The CFA program curriculum now includes Practical Skills Modules (PSMs) to help you develop practical, relevant skills for your career. Each PSM uses various tools to help you apply what you are learning to real-world scenarios.
You must complete at least one PSM at each exam level to receive your exam results. You can start your PSM topic any time after registering for the exam. Each module takes 10 to 20 hours to complete.
Earning the CFA Charter is a mark of distinction. It shows employers that you have the knowledge and commitment to succeed in today's fast-changing investment industry. The CFA designation is recognized around the world, giving you the flexibility to pursue investment management roles anywhere.
You will gain real-world skills in investment analysis from leaders in investment education. The CFA credential also helps you enhance your professional profile with a digital badge you can share on your online networks. If you are ready to take the next step in your finance career, consider starting your journey to become a CFA charterholder.
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