CFA Charterholders: Can You Skip CAIA Level 1?

Kateryna Myrko
May 31
4 min read

For CFA charterholders looking to expand their expertise into alternative investments, the CAIA (Chartered Alternative Investment Analyst) designation is a logical next step. A frequent and important question arises: Can CFA charterholders skip CAIA Level 1? The answer is a clear and definitive yes. This article provides a thorough explanation of the exemption, eligibility requirements, the process, and the professional implications.

Can CFA Charterholders Skip CAIA Level 1?

Yes, CFA charterholders can skip CAIA Level 1 and proceed directly to CAIA Level 2. This is possible through the CAIA Stackable Credential Program, a formal arrangement between the CAIA Association and the CFA Institute. The program recognizes the significant overlap in foundational investment knowledge between the two designations and allows CFA charterholders to bypass the first of the two CAIA exams, making the path to the CAIA Charter much shorter and more efficient.

Why Does This Exemption Exist?

The CAIA Stackable Credential Program was developed after a comprehensive comparison of the CFA and CAIA curricula. The analysis revealed that approximately 80–85% of the CAIA Level 1 curriculum is already covered by the CFA program across its three levels. This overlap includes core investment concepts, ethics, quantitative methods, and more. As a result, the CAIA Association determined that CFA charterholders have already demonstrated the foundational knowledge required for CAIA Level 1, justifying the exemption.

The program began as a pilot in 2018 and was made permanent after proving successful and popular among candidates and employers alike.

Who Is Eligible to Skip CAIA Level 1?

To take advantage of the CAIA Level 1 exemption, you must meet all of the following conditions:

You must be a CFA charterholder in good standing. Passing all three CFA exams is not enough; you must have been awarded the CFA Charter and have no current or past Professional Conduct Program (PCP) cases.
You must have a verifiable CFA digital badge. This allows the CAIA Association to confirm your charterholder status quickly and efficiently.
You must not have any prior CAIA exam history. If you have previously registered for or attempted any CAIA exam (even if you did not sit for it), you are not eligible for the exemption.

There is no limit to the number of CFA charterholders who can use this pathway, as long as these requirements are met.

How Does the Exemption Work?

If you qualify, you do not need to take or pass CAIA Level 1. Instead, you can register directly for the CAIA Level 2 exam. If you pass Level 2 and meet the CAIA’s experience and membership requirements, you will earn the CAIA Charter.

Registration Process:

Create a CAIA account and select the “One Exam Advantage Option – Exclusive for CFA Charterholders.”
Provide your CFA digital badge URL, the year you became a charterholder, and your CFA Society affiliation for verification.
Once verified, you can register for CAIA Level 2.

Key Benefits of the Exemption

Time Savings: You only need to pass one exam (Level 2) instead of two, significantly shortening the time to earn the CAIA Charter.
Cost Savings: You avoid the registration and exam fees for CAIA Level 1.
Career Advantage: The CAIA Charter is highly valued in alternative investments, including hedge funds, private equity, real assets, and family offices. Adding CAIA to your CFA broadens your expertise and appeal to employers in these growing sectors.
Efficient Credential Stacking: The Stackable Credential Program is designed to recognize your prior learning and streamline your professional development.

Frequently Asked Questions

Q: Can I skip CAIA Level 1 if I have only passed CFA Level 3 but do not have the Charter?

A: No. You must be a full CFA charterholder, not just a Level 3 passer. The CAIA Association requires verification of your charterholder status via your CFA digital badge.

Q: What if I have previously registered for a CAIA exam but did not take it?

A: You are not eligible for the exemption if you have any prior CAIA exam history, regardless of whether you sat for the exam.

Q: Is the CAIA Level 2 exam more difficult if I skip Level 1?

A: The CAIA Level 2 exam assumes you have the foundational knowledge covered in Level 1, which the CFA curriculum is deemed to provide. However, you should still review the CAIA curriculum to ensure you are prepared for the specific focus on alternative investments.

Q: How long has this exemption been available?

A: The Stackable Credential Program began as a pilot in 2018 and has been a permanent feature since then.

Professional Impact and Industry Perspective

The ability to skip CAIA Level 1 is a significant advantage for CFA charterholders. It reflects the industry’s recognition of the CFA credential’s rigor and breadth. Employers in asset management, family offices, pension consulting, and alternative asset firms value professionals who hold both designations, seeing them as well-rounded and highly knowledgeable in both traditional and alternative investments3 5.

Many CFA charterholders who have added the CAIA designation report that it is particularly valuable if you work with ultra-high-net-worth clients, institutional investors, or in roles where alternative investments are a major focus3. The CAIA curriculum is considered a strong complement to the CFA, offering specialized knowledge that is increasingly in demand.

CFA charterholders can absolutely skip CAIA Level 1 and move straight to Level 2, thanks to the CAIA Stackable Credential Program. This efficient pathway recognizes the substantial overlap between the two programs and rewards CFA charterholders for their prior learning and expertise. If you meet the eligibility requirements, you are just one exam away from adding the globally respected CAIA Charter to your professional credentials—a move that can open new doors in the expanding world of alternative investments.