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A Chartered Financial Analyst (CFA) has successfully passed rigorous coursework in the fields of economics, financial analysis, financial accounting, portfolio management and securities analysis. Those who hold the CFA charter are required to adhere to strict guidelines for proper conduct, meaning that a financial advisers who also holds the CFA charter is transparent and trustworthy.

What Is a CFA Charter?

The CFA charter is a professional designation awarded to financial analysts who meet the competency and integrity requirements of the CFA Institute. Financial analysts who seek to hold the CFA charter are required to pass three rigorous tests. In addition, they must complete four years of work experience, spending 50% or more of their time managing assets. They are also required to uphold the code of ethics and standards of the CFA Institute.

How Does the CFA Charter Help Financial Advisers?

The CFA exams are widely regarded as some of the most rigorous and all-encompassing exams in the finance industry. Exam topics cover ethics, quantitative methods such as statistics, economics, financial reporting and analysis, corporate finance, equity investments, fixed income investing, derivatives, alternative investments, portfolio management and wealth planning.

The scope of knowledge required to successfully pass the three CFA exams is so broad that any CFA charter holder who is also a financial adviser has a depth of knowledge unmatched by non-CFA financial advisers. They thoroughly understand every type of investment imaginable and know how to tailor investments to fit clients' specific needs.

Due to the high focus on ethics, a financial adviser who holds a CFA charter is extremely trustworthy and reputable.

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