What is a CFA Charter and Why You Should Get Yours

During the last year people have been subject to living in lockdown, the coronavirus broke out back in 2019 in Wuhan in China. Although every effort was made by the Chinese authorities to prevent the spread of this deadly virus, by the time they first locked Wuhan down, people had already left the area and traveled overseas, which led to the epidemic becoming a global pandemic. To protect their citizens, governments worldwide implemented lockdowns encouraging people to stay home to prevent the virus from spreading. Whilst living in lockdown and working from home, people had a lot of extra free time and had more time to think and evaluate their lives. Many people realized that they weren’t happy with the job that they are currently in which has led to people studying for and gaining different qualifications from PT courses to hairdressing to finance courses. People think that if they have these new qualifications, once the pandemic is over and lives return to normal, they will be able to have a change of career. This was a great opportunity for people wanting a change of career as usually, people wouldn’t have the time to achieve new qualifications alongside work. One of the most popular qualifications that people have started their journey to obtain in this past year is the CFA charter. If you want to know what a CFA charter is and why you should join these people in getting one, then keep reading as we’ve summed it all up for you. 

What is a CFA charter?

CFA stands for Chartered Financial Analyst. This is a well-respected job and it is a very prestigious job that is highly competitive to get into and objectively it is a difficult job that requires a lot of hard work. It takes years to obtain a CFA charter as it is among the hardest charters out there and anyone who obtains one can use it to prove that they are a dedicated and determined individual. It is a job with many different functions and often within companies will be broken up into various roles, these include roles such as research analyst to a financial advisor, this is because there is so much content on the CFA course it would be too much to have one person deal with everything. Those who obtain a CFA charter are qualified to work in various roles like accounting, trading of financial planning. 

 

How do you get a CFA charter?

Obtaining a CFA charter is a long process, so make sure before you sign up for a course you know what the process is and make sure you’re ready to commit to it. You need to be able to set aside a lot of time in the next few years of your life as to obtain this charter you need to be able to put in upwards of 1000 hours of study time. The first stage of the process is that the course is split into 3 modules, each one has a year’s worth of content and is finished with an exam. These exams are some of the hardest exams in the finance sector so you definitely have to be disciplined and put the time in to pass. When you’re in your first year this may be the hardest as you don’t know the best way to study or what the exam is going to be like, luckily if you’re struggling there is cfa level 1 study material online which will be a great tool in helping you pass. After the first year and the first exam, you should find the next 2 exams easier to pass as you’ll have figured out the right way to revise for you. Once you’ve completed all 3 of your exams (or during them if you can manage it) you also need to obtain work experience, this can be with any company but you must be involved with the decision-making process for investments and have at least 12 months experience. After this, you’ll need to ask someone who you worked with or a teacher for a reference, you need to have 3 referees. Once these have been submitted, you can finally become a member of the CFA and you’ll have obtained your qualification.  

 

Why you should get a CFA charter?

If you’re wanting to work in the finance sector then a CFA charter is one of the best things you can obtain to help you succeed in the industry. This charter is becoming more popular every year as employers are starting to favor it over many other qualifications like the Masters of Business Administration and so more people are trying to obtain it. In the last year alone, the growth of people obtaining a CFA has rapidly increased by 7% and is projected to continue to increase over the next 5 years. This has become the new charter that having it written on your CV shows how great a candidate you are without you having to say anything. After the 2008 recession, which was caused by the finance sector, rules and regulations got much tighter, this included ensuring employees are properly trained. Now, around 90% of investment banking companies have stated that they prefer to hire people who have a CFA and for higher-level positions, it is now a requirement to have a CFA.  

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