CFA Exam Exemptions: A Big Perk You Should Know

Key Takeaways

• Does CFA offer exemptions? No, the CFA Institute does not offer any direct exam exemptions for candidates coming from other qualifications. 
• Does CFA offer waivers? No, the CFA Institute does not grant waivers that allow candidates to skip any of the three mandatory exam levels. 

Comprehensive Guide: CFA Exam Exemptions

• What is CFA?

The CFA credential is an elite, globally recognised professional investment management designation.

• What are CFA exemptions?

They are credits or regulatory passes granted by other organisations to candidates who have passed CFA exams. 

• What are CFA waivers?

They are policies by financial regulators that excuse CFA charterholders from taking national licensing exams. 

• What are CFA subsidies?

They are financial aid or grants that offset registration costs and cover study expenses for eligible candidates. 

• Which certification exempt CFAs?

Qualifications like the CAIA, ACCA, and CIMA allow CFA charterholders to skip specific exam papers.

The Chartered Financial Analyst (CFA) is an internationally accredited qualification in finance and investment. Candidates must clear three levels in the course, among which Level 1 is the most crucial.

A CFA-certified professional offers services like portfolio management and investment guidance to businesses, individuals, and other organisations. With a CFA certification, professionals can make a successful career in investment banking, insurance, and so on

But did you know that pursuing the CFA programme can also grant you various waivers from other professional certifications and exams? Although these are not essentially CFA exam exemptions, the CFA Institute’s waiver programmes will let you waive some requirements of other financial credentialing services, products, or organisations. 

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What is CFA

The Chartered Financial Analyst (CFA) designation is one of the most respected and globally recognised certifications in the finance and investment industry. Offered by the CFA Institute, the programme is designed to equip professionals with a deep understanding of financial analysis, portfolio management, ethics, and investment strategies.

CFA certification requires passing three challenging exam levels: Level 1, Level 2, and Level 3. Each stage builds on the last, moving into more advanced financial and investment principles. In addition to the exams, candidates must also complete specific professional work experience requirements to earn the CFA charter.

A CFA charter holder can explore rewarding careers in sectors like investment banking, asset management, hedge funds, equity research, and risk management. With global recognition and industry-wide acceptance, the CFA designation sets professionals apart, making them highly desirable in competitive finance job markets.

What are CFA Exam Exemptions?

Aspirants are often curious about CFA exam exemptions. But there are no current exemptions on the CFA exams themselves. However, there are waivers from other professional certifications, regulatory bodies, and global examinations only after you pass the CFA Level 1 examination. 

For instance, you can get CPE credits after completing US CPA or similar professional qualifications. But you must remember that regulations around these waivers and exemptions keep changing frequently, and you must keep yourself updated to get the most benefits.

Different CFA Exemptions

As a budding Chartered Financial Analyst, you must know about the CFA programme and its waivers. The exam exemptions come under three main categories and are available in over 40 countries worldwide. Let us look at them:

1. Recognition From Regulators

Completing a CFA programme is no small feat, and candidates enrolling for the programme are equally talented and skilled. Keeping the high standard of the CFA programme in mind, many regulators waive certain regulatory measures for such candidates. 

Following is a list of some regulators who offer waivers for the CFA programme:

• Canadian Securities Administrators (CSA)
• New York Stock Exchange (NYSE)
• Financial Industry Regulatory Authority (FINRA)
• The UK’s Financial Conduct Authority (FCA)
• The Monetary Authority of Singapore (MAS)
• Investment Industry Regulatory Organisation of Canada (IIROC)
• Securities and Exchange Commission of Pakistan (SECP)

Major CFA Exam Exemptions by Global Regulators

• Australia

The Licensing Exam, Australian Securities and Investments Commission (ASIC) is Australia’s chief regulator. To get this waiver, a candidate must pass the CFA Level 1 exam in combination with the RG 146 Gap Training Programme for CFA candidates and charter holders. Passing both exams is an added advantage. 

• Canada: 

IIROC and CSA are the primary regulators, where the minimum CFA status is either a CFA charter holder or CFA Level 1.
Candidates passing CFA Level 1 will not need to take the Canadian Securities Course to become an investment professional. CFA charter holders meet proficiency requirements for Investment Fund Managers, Portfolio Managers, and Mutual Fund Dealers

• China: 

The Asset Management Association of China (AMAC) requires a CFA charter holder as the minimum CFA status. In China, senior managers in hedge funds or private equity who are CFA charter holders don’t have to appear for Paper 2 of AMAC’s examination. 

• The United States of America: 

The USA has four regulators. FINRA’s minimum CFA status requirement is passing CFA Level 2; NYSE’s is passing CFA Level 1, and the North American Securities Administrators Association (NASAA)’s and Investment Adviser Registration Depository (IARD)’s is being CFA charter holders.

• For FINRA, applicants who have cleared the CFA Level 2 exam are exempt from Part 1 (Series 86) of the Research Analyst Qualification Examination. 
• The NYSE Supervisory Analysts Qualification Exam’s Part II is waived for NYSE.
• For NASAA, CFA charter holders will not need to take the Series 65 exam to become investment advisers and representatives. 
• For IARD, CFA charter holders might get exemptions from state competency examinations. 

• United Kingdom

FCA is the regulator in the UK, where the minimum CFA status is passing Level 1, 2, or 3.
Candidates are exempt from Investment Management Certificate (IMC) Unit 2 on passing CFA Level 1 or 2. CFA charter holders are exempt from IMC Unit 2, including candidates who advise private investors.

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Here are some prominent CFA exam exemptions offered by global regulatory bodies:

• Australia: Licensing Exam, Australian Securities and Investments Commission (ASIC) is Australia’s chief regulator. To get this waiver, a candidate must pass the CFA Level 1 exam in combination with the RG 146 Gap Training Programme for CFA candidates and charter holders. Passing both exams is an added advantage. 
• Canada: IIROC and CSA are the primary regulators, where the minimum CFA status is either a CFA charter holder or CFA Level 1.
  Candidates passing CFA Level 1 will not need to take the Canadian Securities Course to become an investment professional. CFA charter holders meet proficiency requirements for Investment Fund Managers, Portfolio Managers, and Mutual Fund Dealers.

Check out our blog “Do Financial Analyst & Investment Banking Professions Need A CFA Degree?” to learn more about job prospects after CFA.

1. China: The Asset Management Association of China (AMAC) requires a CFA charter holder as the minimum CFA status. In China, senior managers in hedge funds or private equity who are CFA charter holders don’t have to appear for Paper 2 of AMAC’s examination. 

2. The United States of America: The USA has four regulators. FINRA’s minimum CFA status requirement is passing CFA Level 2; NYSE’s is passing CFA Level 1, and the North American Securities Administrators Association (NASAA)’s and Investment Adviser Registration Depository (IARD)’s is being CFA charter holders.

• For FINRA, applicants who have cleared the CFA Level 2 exam are exempt from Part 1 (Series 86) of the Research Analyst Qualification Examination. 
• The NYSE Supervisory Analysts Qualification Exam’s Part II is waived for NYSE.
• For NASAA, CFA charter holders will not need to take the Series 65 exam to become investment advisers and representatives. 
• For IARD, CFA charter holders might get exemptions from state competency examinations. 

3. United Kingdom: FCA is the regulator in the UK, where the minimum CFA status is passing Level 1, 2, or 3.
Candidates are exempt from Investment Management Certificate (IMC) Unit 2 on passing CFA Level 1 or 2. CFA charter holders are exempt from IMC Unit 2, including candidates who advise private investors.

2. Professional Certification Programmes

Finance professionals can take up various certification programmes. Many of these certification programmes approve the CFA charter offering candidates attractive waivers for examinations, coursework, work experience and educational courses. 

Let’s look at some such programmes:

• Investment Management Certification (IMC) examinations: Candidates are exempt from IMC Part II on passing CFA Level 1 or higher. 
• Chartered Alternative Investment Analyst (CAIA) exams: CFA charter holders can skip CIAI Level 1 exams and reach the final CAIA Level 2 examination via the Stackable Programme. 
• Association of Chartered Certified Accountants (ACCA): There are no CFA Level 1 exemptions for ACCA. Instead, CFA charter holders are exempt from taking the Paper F3 – Financial Accounting exam of ACCA, one of the five mandatory papers of the ACCA.  

• Professional Risk Manager (PRM) designation: CFA charter holders don’t need to appear for the PRM exam. 
• Chartered Institute of Management Accountants (CIMA): Candidates passing CFA Level 3 qualify for the Master’s gateway route, a quick entry programme to CIMA.

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3. Waivers From Grad Schools and University Courses

Candidates can get a course waiver for a graduate degree in investment, banking, business school or financial services if they have some CFA programme achievement to their credit. 

For instance, you could be exempt from appearing in the GRE/GMAT entrance exams to get admission to a business school. Most leading universities in the USA have course waivers or GMAT/GRE entrance test waivers with CFA Level 1 or Level 2 completion. 

Globally, approximately 60 university programmes are eligible for CFA exam exemptions. The following are some of the universities offering such programmes:

• London Business School
• Duke University
• The University of California, Los Angeles
• John Hopkins University
• The University of California, Berkeley
• The University of Melbourne
• The University of North Carolina, Wilmington
• Texas A&M University
• Boston University
• University of London
• EADA Business School, Spain
• Frankfurt School of Finance and Management
• Grenoble Ecole de Management, France
• Queen’s University
• China Europe International Business School
• Cornell University 

Waivers Offered by the CFA Institute

While the CFA Institute does not offer direct exemptions for any of its own exam levels, it does have agreements with multiple regulatory bodies, professional organisations, and academic institutions that grant waivers or exemptions based on your progress or completion of the CFA programme.

These waivers fall into three main categories:

• Regulatory Recognition: 

Many financial regulators across the globe, such as FINRA (USA), FCA (UK), ASIC (Australia), and IIROC (Canada), recognise the CFA programme. These bodies offer waivers on licensing exams, professional competency requirements, and other regulatory mandates based on your CFA level or charter holder status.

• Professional Certification Waivers:

As a CFA candidate or charter holder, you can receive exemptions in exams or coursework from other well-regarded certifications. For example:

• CAIA lets CFA charter holders skip Level 1.
• ACCA grants an exemption from its Paper F3 to CFA charter holders.
• PRM waives Exam 1 for CFA charter holders.
• CIMA offers a fast-track Master’s gateway route to those who’ve completed CFA Level 3.

• University and Graduate School Waivers: 

Leading universities across the globe recognise CFA exam completion when considering applications. CFA Level 1 or 2 can sometimes substitute GRE/GMAT scores for admissions or grant course credits and exemptions in MBA and finance-related graduate programmes. Schools like London Business School, UCLA, Cornell, and the University of Melbourne are among those offering such benefits.

These waivers help reduce redundancy in learning, save time and cost, and accelerate career growth, making the CFA journey even more rewarding.

Conclusion

As someone aspiring to make a career in the finance and investment industry, having a CFA certification and other professional certifications is advantageous. You must also know of the various CFA exam exemptions and waivers from global regulatory bodies, universities, grad schools and professional certification programmes. These exemptions are a perk for saving time, money and hard work. 

Zell Education offers globally recognised certifications in programmes like CFA, ACCA course, and others for rewarding careers in finance and accounting. Study programmes from Zell Education stand out from the rest with personalised study plans, world-class faculty, student mentorship, and other benefits. Visit Zell Education to learn more.

FAQs on CFA Exam Exemptions

Does completing CFA Level 1 let me skip any licensing or regulatory exams?

Yes, Level 1 passers may be exempt from exams like Series 65, IMC Unit 2, or others in certain countries.

Which CFA level exemptions apply toward ACCA?

CFA charterholders are exempt from ACCA’s Financial Accounting (Paper F3).

Can passing CFA exams waive MBA entrance tests like GMAT or GRE?

Yes, CFA Level 1 (or higher) often earns GMAT/GRE waivers at various universities.

Do universities give course credits for completing CFA levels?

Yes, many universities award course waivers or program exemptions, particularly in finance or MBA streams.

Can CFA charterholders skip parts of CIMA or other certifications?

They may; CIMA, CAIA, PRM, and similar programs often grant exemptions to CFA charterholders.

Does CFA allow skipping licensing exams in different countries?

Yes, regulators in the US, UK, China, Australia, and others offer licensing exam waivers for CFA passers or charterholders.

Current Role

Co-Founder & CEO at Zell Education

Education

• ACCA – Association of Chartered Certified Accountants, Finance (2011 – 2014)
• Bachelor of Commerce (BCom), Financial Markets from H.R. College Of Commerce & Economics (2010 – 2013)

Location

Mumbai, India

Expertise

ACCA Certified