CFA® Level 3 Exam
Aced the CFA Level 2 exam? Congratulations! The CFA Level 3 exam is the third and final exam required by the CFA Institute. You will receive your CFA Charter once you have passed Level 3 and have at least 48 months of relevant work experience and the required references.
Unlike the first two levels, which focus on basic financial knowledge, investment valuation comprehension, and application, the CFA Level 3 exam focuses on portfolio management and wealth planning. According to recent changes in the CFA exam dates and frequency, the CFA Level 3 exam will be held twice a year in 2023: February and August
Year | Exam Window | |
---|---|---|
2023 | February | August |
What Is the CFA Level 3 Exam Format, Structure, and Duration?
The CFA Level 3 exam is conducted twice a year with both item-set and essay-type questions. The Level 3 exam takes place over a 4-hour and 24-minute period split into two 2-hour and 12-minute sessions. Candidates can also take an optional break.
- The morning session (Session 1) features 8 to 11 open-ended essay-type questions. Each question has multiple parts, such as A, B, C, and so on, which help you organize your answer in a template. These questions will present you with a situation that requires an apt recommendation or solution.
- The afternoon session (Session 2) will have 10 item sets, divided into 44 Multiple Choice Questions beginning with a case statement and ending with six multiple-choice questions. At approximately 52%, Level 3 has the highest pass rate for all levels over the last 10 years.
CFA Level 3 Topics Overview
Portfolio Management and Wealth Planning account for a sizable portion of the CFA Level 3 exam. It also covers seven topics divided into two categories: Ethical and Professional Standards, and Asset Classes.
Topic | Topic Name | Weight |
---|---|---|
1 | Economics | 5-10% |
2 | Alternative Investments | 5-10% |
3 | Derivative Investments | 5-10% |
4 | Equity Valuation | 10-15% |
5 | Ethical and Professional standards | 10-15% |
6 | Fixed Income | 15-20% |
7 | Portfolio Management and Wealth Planning | 35-40% |
Here are some brief points about the most crucial CFA Level 3 topic—Portfolio Management and Wealth Planning:
- Portfolio management concepts will be predominant in both the morning and afternoon sessions.
- The curriculum is extensive and introduces new behavioral finance concepts that serve as the foundation for financial decision-making.
- The topic also covers concepts like risk management, including tools and techniques for measuring and managing risk.
- You will most likely be tested on individual and institutional wealth questions.
CFA Level 3 Exam Curriculum Updates
For the 2023 exam cycle, content at Level 3 will remain locked from the 2022 curriculum, meaning all the changes made in 2022 will remain the same for 2023 as well.
CFA Level 3 Exam Eligibility, Registration, and Scheduling
The CFAI has set some CFA eligibility requirements you must meet to register for the exam. Naturally, to sit for the CFA Level 3 exam, you must first pass the CFA Level 1 and 2 exams. After meeting the eligibility requirements, the CFA registration process is similar to Level 1 and Level 2.
Some pointers to consider:
- Clear the CFA Level 1 and Level 2 exams
- Make sure you have the particulars of your CFAI account
- Pay the fees per your selected payment window
- Accept the ‘Candidate Agreement’ and submit the Professional Conduct Statement
- After registering, you must schedule your exam date within the exam window of your choice. While the scheduling deadlines are much like those of the Level 1 exam, the rescheduling deadlines are usually a little longer for levels 2 and 3.
Eligibility and Registration
To begin, candidates must have a bachelor's (or equivalent) degree, be a final-year student (complete the degree before registering for the level 3 exam), or have approximately 4,000 hours of professional work experience (or a combination of work experience and education totaling 4,000 hours). Moreover, the registration process of Level 3, with the exemption of the one-time enrollment fee, is the same as that of Level 1 and 2. Also, because the exam and the entire curriculum are in English, the candidate must be fluent in the English language. Only after making the required payments can a candidate register for the level 3 exam.
Exam Fee
Beginning with the 2023 exam cycle, the price of the one-time enrollment fee will decrease from $450 to $350, while the cost to register for each exam will increase from $700 to $900 for early registration and from $1,000 to $1,200 for standard registration.
Type of Registration | Feb 2023 Window | August 2023 Window | Registration Fees |
---|---|---|---|
Early Registration Due Date | CLOSED | February 1 | $900 |
Standard Registration Due Date | January 31 | May 9 | $1200 |
Scheduling and Rescheduling your CFA Level 3 Exam
The CFA Level 3 exam, unlike the Level 1 has a slightly more extended rescheduling period with an additional $250 fee per rescheduling. The entire process is aided by a dedicated platform known as ProScheduler.
It is important to note that registering for the exam is a two-step process. You must first register, then schedule your appointment. During the registration process, you will see test center options from among 400 locations, with confirmed available seating. If you don't see your preferred location listed, keep checking back because the CFAI regularly updates the appointment availability.
Exam Center Locations
CFA exams are administered in over 400 locations worldwide. Candidates will see test center options during the scheduling procedure with confirmed available seating. Remember that registering for the exam is a two-step process: You must first register, then schedule your specific exam date and location. If you don't see your preferred location listed, try checking back since the CFAI regularly updates these specifics.
Looking for a more detailed overview of the exam center locations? CFAI's exam-center-location guide can help you sort through any confusion.
CFA Level 3 Exam-Day Requirements
For the CFA Level 3 exam, you may only bring the following items to the test center:
- A CFA exam calculator (including the case and loose batteries)
- A valid international travel passport
- Eyeglasses (without the case)
- Additional personal items are allowed in the test center (if applicable), e.g., earplugs, medication, etc
- Personal baggage and food items aren't allowed inside the test center
Calculators used for the Level 3 exam
Only two calculator models are authorized for use during the tests:
- Texas Instruments BA II Plus (including BA II Plus Professional)
- Hewlett Packard 12C (including the HP 12C Platinum, 12C Platinum 25th anniversary edition, 12C 30th-anniversary edition, and HP 12C Prestige)
CFA Exam Scholarships
The CFAI offers about five scholarships with varying eligibility requirements and scholarship amounts. Before registering, visit the CFAI website for much more detailed information regarding the aforesaid scholarships.
Frequently Asked Questions
How long is the CFA level 3 exam?
The Level 3 exam will last 4 hours and 24 minutes, divided into two equal sessions of 2 hours and 12 minutes each, with an optional break in between.
How hard is the CFA level 3 exam?
As a Level 3 candidate, you can attest to the difficulty of the same to the previous two CFA exam levels. CFA Level 3 adds additional complexity because the exam format includes essay-type questions while still offering some multiple-choice. For CFA candidates used to multiple-choice questions, the constructed response format or essay section can be challenging to master.
How much does it cost to take the CFA level 3 exam?
For the 2023 exams, the candidates will be charged $900 for early registration and $1,200 for standard registration. These prices do not include any preparatory materials or assets of any kind.
How many times can you take the CFA level 3 exam?
As per the CFAI in 2023, the CFA Level 3 exam will be administered two times a year. A candidate can take the exam a maximum of two times a year and six times in total (for each level).
What if I fail the CFA level 3 exam?
A candidate may take the exam a maximum of two times per year and six times (for each level). So, even if you fail the level 3 exam once, the six-month window before attempting it again will give you enough time to prepare.
Where can I get CFA level 3 exam practice questions?
UWorld’s Mock Exams closely replicate the actual CFA Level 3 exam experience to help you prepare and boost your confidence on test day. Like the actual exam, it consists of two 2-hour, 15-minute sessions, each with questions spanning multiple subjects. Even better, you can also compare your progress with other users.
How soon do I get my CFA level 3 exam results?
CFA Level 3 exam results are expected to be available approximately ten weeks after the close of an exam window.
What is the average CFA level 3 pass rate?
Over the last 10 years, Level 3 has had the highest pass rate of all levels, standing at approximately 52%.
Read More About the CFA Exam
Looking to make your CFA preparation easier? Our Formula Sheets serves as a quick reference for locating the important formulas for the test, making preparation more efficient.