Financial Analysts

Certification or Licensing

Financial analysts can earn the title chartered financial analyst (CFA). The CFA charter is recognized around the world as a standard in the finance industry. Many employers expect job seekers to be CFA charterholders. While certification is not required, it is recommended. The CFA program, which is administered by the CFA Institute, consists of three levels of examinations. These rigorous exams deal with such topics as economics, financial statement analysis, corporate finance, and portfolio management. The CFA Institute states that a candidate may need to spend up to six months to prepare for each level. The CFA Institute reports that the average candidate takes three to four years to earn the CFA charter. Candidates who do not successfully complete all three levels within seven years must reregister. Before taking the first exam, candidates must meet one of the following entrance requirements:

• have completed a bachelor’s program or equivalent program and received a degree
• be a current university student who is within 23 months from completing their undergraduate degree
• have a combination of 4,000 hours of work experience and/or college/university education that was acquired over a minimum of three sequential years and achieved by the date of enrolling for the Level I exam

The Association for Financial Professionals, Chartered Alternate Investment Analyst Association, Investment Adviser Association, and Global Academy of Finance and Management also offer certification.

For certain upper-level positions, some firms require that you have a certified public accountant license.

The Financial Industry Regulatory Authority is the primary licensing organization for the securities industry. Visit its Web site, http://www.finra.org, for more information on licensing requirements for financial analysts who work as financial services brokers.