What is the Chartered Financial Analyst (CFA, sometimes called CFA Finance) certification, recognized in the world of finance, for and how to obtain it? This article aims to answer these two questions.
What is the CFA Finance?
The Chartered Financial Analyst (CFA) title is a diploma awarded by a private American organization, the CFA Institute. First recognized only in North America, it became globally recognized in the 1990s-2000s.
The CFA certifies in particular the excellence of its holders in financial analysis. It is divided into three levels, commonly known as CFA I, CFA II and CFA III. It is generally aimed at students (for level I) and young professionals for levels II and III, who of course intend to pursue a career in the finance sector.
How to obtain CFA certification?
Each year, there are two exams organized for the CFA I (in January and June) and only one for the CFA II and CFA III (in June only). The exams take place on the same day in all cities where it is possible to take them around the world. The first two levels are only MCQs: for each question, candidates have the choice between three possible answers. As for level three, it includes multiple choice questions but also a “ try » with open questions.
It goes without saying that the exam for the different levels of the CFA is exclusively in English: a good command of the language of Shakespeare is therefore essential.
To have the CFA title, you must meet the following four conditions: have validated the three levels of the CFA, have at least four years of relevant professional experience, that is to say in the finance sector, commit to respecting the CFA code of ethics and finally pay the organization’s annual membership fee (the amount of which varies depending on the country).
CFA Finance: an exam of excellence
If you want to take the CFA Finance, you can opt for training. The Chartered Financial Analyst program is rigorous for candidates, covering various areas of finance that you will explore in the world of work. Candidates gain a solid understanding of key concepts, such as asset valuation, risk management, corporate finance and capital markets. Training is based on global standards and incorporates industry best practices. Candidates also benefit from hands-on immersion through real-world case studies, strengthening their ability to solve complex financial problems.
Once obtained, the CFA Finance certification offers international recognition. It is widely recognized around the world, making it an essential reference in the financial industry. CFA holders are seen as highly qualified and competent professionals, capable of facing the complex challenges of the world of finance. This global recognition allows CFA Finance holders to access career opportunities on an international scale, obtain high-level positions and stand out from their peers.
How much does the CFA cost?
To take the exam, you will have to pay an amount which varies depending on the date on which you finalize your registration. So, if you wish to register for the June 2019 session, it would have cost you $650 until October 17, 2018. Now, registration costs $950 from October 18 and until February 13, 2019, and will cost even $1380 between February 14 and March 13. On March 14, registrations for this session will be definitively closed.
To these costs is generally added the cost of private CFA preparation organizations. For example, it takes several thousand euros to prepare for level I through such structures. Furthermore, many business schools offer their students the opportunity to prepare for level I of the CFA in Master 1, like Kedge Business School, which we interviewed on the subject.
Why take the CFA Finance?
Firstly because it is a demanding exam (less than 50% success rate), which allows those who prepare for it (and pass it) to demonstrate detailed and precise knowledge and understanding of financial analysis. This is a guarantee of mastery and a prerequisite for many companies in the sector, especially in Anglo-Saxon companies: the majority of asset management companies in these countries only recruit employees certified level I or higher.
The other advantage is its international recognition, which allows certified candidates to more easily find work abroad in the field of finance.
Where to obtain the CFA Finance certification? Schools that allow you to take the CFA
If the CFA Finance exam takes place in exam centers, these are generally located in large cities. Each candidate can choose the most convenient exam center based on their location on the day of registration. However, several French universities or Business Schools offer training programs for this exam. It is also possible to follow programs remotely.
In France, several higher education establishments offer preparation programs for the CFA Finance. Here is a non-exhaustive list of them:
- ESSEC
- EDHEC
- SKEMA
- NEOMA
- Paris-Dauphine University
What opportunities after the CFA?
As explained previously, the CFA leads above all to careers in the finance sector. CFA holders then work mainly in management companies, banks and investment banks, brokerage companies, consulting companies, insurance companies and even pension funds.
Focus on the CFA level I
The CFA level I is the one that primarily concerns students who wish to have a solid asset to show off on their CV – in addition to their school – before entering working life, as well as young professionals who wish to improve their skills. or reorient their career.
This is in fact the level which receives the most applications each year and where the failure rate is the highest (the success rate was, for example, 43% in 2016). To pass the exam, you must obtain a score higher than the minimum passing scorewhich varies between 60 and 70% depending on the year, depending on the intrinsic difficulty of the test and the overall performance of the candidates. The exam takes place over one day, with two three-hour sessions (three hours in the morning, three hours in the afternoon). The results are known approximately six weeks after the exam date.
To put all the chances on your side, it is advisable to prepare for this exam six months or even a year in advance. Please note that unsuccessful candidates are allowed to try their luck again in the following session!
The success rate for the CFA Finance
The CFA pass rate has fallen significantly in recent years. The year 2020 was also marked by a phenomenal failure rate. Today, only around 30% of candidates manage to obtain the CFA Level I, II or III.
However, as you may have read above, more and more business schools are allowing students to prepare for this finance certification for free, which is one of the most demanding. NEOMA, for example, prepares for the three levels of the CFA. The school has a success rate of around 70%.
Céline’s advice for preparing for the CFA
Céline, a student at NEOMA, therefore followed the preparation for CFA with his school. She revealed some tips for passing the CFA exam which include very strange questions. “ Be thorough during your revisions, do not miss any details. The CFA questions will focus on the details and not the generality of the course. Get used to the format of the CFA questions which are particular. »
In this interview, she also explains that the CFA was a real career booster, opening the doors to major American banks for her. She specifies: “ In the post-COVID period – and even during the COVID period during which I had my gap year – there was enormous demand on the intern market, compared to a supply that remained similar, or even less, to cause of the pandemic. The CFA boosted my CV. »
Find Céline’s interview on our site!
