CFA is one of the most coveted designations sought by finance professionals globally. The CFA Institute awards the prestigious Chartered Financial Analyst (CFA) designation to candidates who clear all three levels of the CFA exams. CFA candidates make lucrative careers in the investment banking, portfolio management and insurance sectors.
While pursuing a CFA, most aspirants look for CFA exemptions to make their career path smoother. However, it is important to note that although the CFA Institute currently offers no CFA exam exemptions, various waivers are provided to students interested in pursuing other professional exams and certifications like ACCA, CA, etc. The waivers are only available after the candidate clears CFA Level 1 exams.
Read on to learn more about CFA waivers.
Waivers Offered by the CFA Institute
Did you know that clearing the CFA Level 1 exam could accelerate your way to other professional designations, GMAT/GRE requirements, and a finance regulation examination?
This is possible through the various CFA waivers. Ensure you know about these waivers in detail to save your precious effort and time.
Categories of CFA Waivers
As per the CFA Institute, the waiver opportunities are categorised into three types. They are:
- Licensing Exam Waiver
- Graduate School Waiver
- Certification Program Waiver
Let us explore the categories in detail:
Licensing Exam Waiver
Many licensing and financial regulatory bodies worldwide offer waivers on various exams specific to their country. CFA level 1 exemption is the most common requirement in most cases.
- Australia: Licensing Exam
To provide financial product advice to clients, finance professionals in Australia must undergo training (Regulator Guide 146), adhering to minimum training standards.
On passing the CFA Level 1 exam and completing the RG 146 Gap Training Program, the minimum training standard is met for CFA Charterholders.
- China: Professional Qualification Exam
The regulatory body for CFA waiver in China is the Asset Management Association of China (AMAC).
AMAC approves the CFA program as a professional qualification examination for appointment in senior management positions in securities investment funds. Candidates looking to work in such roles will not need to appear for Paper 2 of AMAc’s exam.
- United Kingdom: Investment Management Certificate (IMC) Unit 2
The Financial Conduct Authority (FCA) provides the licensing exam waiver. FCA is the regulatory body issuing the requirements for dealing and advising in derivatives and securities.
Candidates who have passed CFA Levels 1 and 2 are exempted from IMC Unit 2.
- Thailand: Investment Analysis on Securities
The licensing exam waiver is on the Investment Analysis on Securities training course.
Applicants who have cleared the CFA Level 1 exam and have at least one year of work experience in foreign or local markets are exempted from the Investment Analysis on Securities training course.
- United States: Part 1 (Series 86) and Series 65 exam
In the United States of America, candidates who have cleared the CFA Level 1 and Level 2 exams will be waived from the Part 1 (Series 86) exam. This is the Analysis Section of the Research Analyst Qualification Examination.
Some states in the USA require investment advisor representatives and investment advisors to clear the Series 65 exam. CFA charterholders do not need to appear for this examination.
Graduate School Waiver
If you have cleared any CFA exam level, you might be lucky to get a course waiver if you intend to pursue a graduate degree in any business school, financial services, investment or banking sector. Interestingly, almost 60 university programs globally are permitted for CFA exam exemptions.
- University of Melbourne (Australia)
A CFA charterholder will be exempted from GMAT/GREs at the university.
- Frankfurt School of Finance and Management (Germany)
Candidates pursuing a Master of Finance at the institution will have one elective subject waived off if they have passed CFA Level 1 or more.
- London Business School and University of London (United Kingdom)
Applicants for a Masters in Finance at London Business School must submit GRE or GMAT test scores. Candidates who have cleared CFA Level 2 can waive this requirement.
If you are pursuing the Global MBS Program at the University of London, you can claim some course credits if you have cleared CFA Levels 1, 2 and 3.
- University of California, Berkeley, Boston University, University of Iowa, Duke University (United States of America)
MBA candidates at the University of California, Berkeley, who have already cleared CFA Level 3, have waivers from 2 courses – MBA 202 Financial Accounting and MBA 203 Finance.
There are 10 courses in the MS in Financial Management program at Boston University. A CFA charterholder can waive 2 out of the 10 courses.
If you have cleared CFA Level 1 examinations, you can waive Master of Finance core courses at the University of Iowa.
Candidates who have passed CFA Level 3 exams and have enrolled in Duke University graduate business programs will be eligible for administrative exemption from Finance 645.
Certification Program Waiver
Finance and investment professionals often enrol in various certification programs to accelerate their career graph. Being a CFA often comes with attractive waivers for the certification courses, examinations and work experience.
- Association of Chartered Certified Accountants (ACCA)
Many people ask about ACCA to CFA exemptions or CFA exemptions after ACCA. If you are a CFA charterholder and applying for ACCA membership, you will get an exemption. You will not need to appear for the ‘Finacial Accounting’ exam (Paper F3 of ACCA)
- Certified Investment Management Analyst (CIMA)
To obtain CIMA certification, a candidate has to pass five steps. A CFA charterholder gets an exemption from two of the five steps.
- Chartered Accountant (CA)
There are no CFA exemptions for CA. In other words, you will not be eligible for any exemption in CFA after CA. The only benefit is that if you have cleared CFA Level 1, you will have covered 60% of the CA syllabus.
Conclusion
Clearing CFA exam levels or being a CFA charterholder comes with many benefits, particularly if you want to pursue another professional course or certification in finance, investments, etc. Though no CFA exemptions exist, many waivers are available in different categories.
Candidates pursuing CFA can enrol in The WallStreet School’s Classroom Bootcamp CFA Prep Program or Online CFA Prep Program. With an up-to-date course syllabus and extensive practical training, these courses prepare you for the CFA exams well.
Enrol today!
Contact us via email or phone (+91-9953729651) for more detailed information.
FAQs
- Is it possible to finish CFA in 2 years?
There are 3 CFA exam levels – 1, 2 and 3. Each level takes almost 6-9 months to prepare. It takes nearly 2-5 years to clear all CFA exam levels and become a CFA charterholder.
- Which is tougher – CFA or CA?
CA is considered tougher than CFA. CFA has a higher passing rate when compared to CA.
- Which professional certification is best in combination with CFA?
The combination of CFA and FRM works best in the competitive finance world. However, clearing the exams for both programs is quite challenging and time-consuming.
