A Crystal Clear Guide CFA Work Experience Requirements

A Chartered Financial Analyst (CFA) is one of the highest professional designations offered by the CFA Institute that measures the competence, skills, and knowledge of Financial Analysts. However, a candidate must pass three exams to become a CFA charter holder, have four years of work experience, and follow the CFA Institute’s Code of Ethics and Standards of Professional Conduct. 

This is a complete guide on the CFA work experience requirements and how a candidate can adequately prepare themselves to become a qualified CFA charter holder. 

Does CFA Need Work Experience? 

There are ample employment opportunities for a CFA aspirant in investment banking and portfolio management. However, it isn’t quite easy to get the CFA distinction. 

Does CFA need work experience? The answer is yes, it does. In addition to passing all three exam levels, the candidate must also ensure that they have relevant work experience to qualify for this designation. Let’s find out how much work experience is required for CFA. 

Recent Changes in the CFA Work Experience Requirements

Before March 3, 2021, the CFA Institute had some enrolment criteria for the CFA Level 1 exam, which were slightly modified after the date mentioned above. 

Let’s look at the CFA job experience requirements before March 3, 2021.

CFA Level 1 enrollment requirements

Before 3 March 2021

• A Bachelor’s degree or equivalent or being in the final year of a reputed university

          Or,

• Four years of education and professional experience, which may not be related to investment. 
• Being involved in full-time internships/ job roles (excluding part-time work). 

From 3 March 2021

The CFA work experience requirement change includes:

• Having 4000 hours of work experience (which may not be investment related) and/or higher education over three consecutive years. 
• Assuming 1000 hours each year for higher education if it is applicable. 

Learn more about CFA Level 1 Course: Exam Dates, Fees, Syllabus & Books

CFA Level 2 Requirements 

Apart from the academic qualifications, which include earning a Bachelor’s degree from a reputed university or an equivalent and having a minimum of 4 years of work experience, the candidate needs to pass the CFA Level 1 exam. 

Learn more about CFA Level 2: Course Details, Syllabus, Salary, Eligibility Criteria

CFA work experience requirements for the CFA Institute’s regular membership

The CFA work experience requirements for regular membership of the CFA Institute were updated on July 1, 2020. These requirements include the following:

• 4000 hours of investment-related professional experience which must be completed within three years (36 months) at least. 
• Professional experience can include remote work or part-time arrangements during or even after completing the CFA programme. 

This CFA work experience requirement change promoted more inclusion of part-time professionals who could address shifts in the global investment employment patterns.  

The Current CFA Job Experience Requirements 

The candidate needs 2-3 professional references and relevant professional experience to earn this prestigious designation. Let’s explore the current CFA work experience requirements a candidate needs to become a CFA charter holder:

• A minimum of 4000 hours of relevant work experience must be completed within three years. This does not mean that the candidate has to work continuously; these hours of professional experience can be taken from any current or previous employment position. 
• Relevant work experience should be related to the investment decision-making process or creating a product of work that informs and adds some value to that process.
• Work experience can be earned through any arrangement, including full-time, part-time and remote work before, during or even after the course completion.

Learn more about CFA Scope and Job Opportunities in 2022: Top Recruiting Sectors

How Does Work Experience Qualify One for the CFA Exam?

To ensure that their work experience is relevant for the regular membership of the CFA Institute, the candidate needs to:

• Look for job profiles that relate to the decision-making process of investment
• Produce work products that inform or add a specific value to that process
• Ensure that the work experience (full-time, part-time or even remote work experience) is accrued either before, during, or even after registering for the CFA programme
• Ensure that the work experience is accurately described in membership application
• Ensure that professional references support their work experience. 

To evaluate whether the candidate has investment-related work experience, they need to ensure that:

• Their work experience evaluates or applies economic, financial and statistical data in the investment decision-making process; or
• Supervise the ones who have done such analysis; or
• Teach others how to analyse or apply such data.

How Can a Candidate Find Job Roles That Meet the CFA Work Experience Requirements?

To understand how one’s work experience affects or contributes to the decision-making process of investment, let’s look at the following list of examples:

• Corporate Finance: Preparing financial models on the data which is publicly available to derive the valuation metrics. 
• Actuary: Performing a yearly actuarial valuation process of the funded status of a DB (definite benefit) scheme. 
• Accounting: Preparing financial statements and evaluating a potential return on corporate project investments. 

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Wrapping Up

The CFA designation is internationally recognized as a definitive sign of excellence in the financial analysis and investment management professions. However, while the candidate is awaiting the designation, they can apply for affiliate membership with the CFA Institute using the ‘charter pending’ tag. The candidate may enjoy all the benefits of the membership but cannot vote.

Zell Educations offers all three levels of the CFA course to help a CFA aspirant have a successful career in investment banking, portfolio management, credit fund analysis, hedge fund management and risk analysis. Zell employs innovative learning strategies and skill upgradation techniques to extend complete placement assistance and guidance to its students.

FAQs on CFA Work Experience Requirements

Do I need work experience to start the CFA Program?

Nope, you don’t need work experience to begin the program, you only need it to become a charterholder.

How much experience do I actually need for the CFA charter?

You need 4,000 hours of relevant experience, earned over a minimum of 36 months, to qualify for the charter.

What types of roles count as qualifying CFA work experience?

Any professional work that involves investment decision-making, producing investment research, or financial analysis counts.

Can I call myself a CFA charterholder after passing Level I?

No, you can only use the CFA designation after passing all three exams and meeting the work experience criteria.

Is the work experience requirement the same for each CFA level?

The 4,000-hour requirement is for the full CFA charter, not for passing individual exam levels.

How many years does 4,000 hours of work experience equate to?

4,000 hours is approximately two years of full-time work, but it must be spread over a minimum of 36 months.

What if my work experience doesn’t directly relate to finance?

Your experience must be directly relevant to the investment decision-making process to be considered for the charter.

Partham Barot is an ACCA-certified professional. showcasing his expertise in finance and accountancy. he’s revolutionising education by focusing on practical, real-world skills. Partham’s achievements underscore his commitment to elevating educational standards and empowering the next generation of professionals.