What is the CVFI credential?

The Certified in the Valuation of Financial Instruments (CVFI®) credential is the key to broadcasting your expertise in performing and reporting on fair value estimates of financial instruments. You understand the full cycle of valuation processes. With this credential, you get to tell the world.

Why is the CVFI credential valuable?

The Certified in the Valuation of Financial Instruments (CVFI®) credential employs a robust framework to address deficiencies that persist in the valuation of financial instruments. As regulators, banks, exchanges and institutions clamor for increased transparency of processes, you’ll be ready to convey your mastery of skills and advocacy of standards.

Why is the CVFI credential valuable?

The Certified in the Valuation of Financial Instruments (CVFI®) credential employs a robust framework to address deficiencies that persist in the valuation of financial instruments. As regulators, banks, exchanges and institutions clamor for increased transparency of processes, you’ll be ready to convey your mastery of skills and advocacy of standards.

Frequently asked questions

What is the CVFI credential?

The Certified in the Valuation of Financial Instruments (CVFI®) credential is designed to enhance consistency and transparency of fair value estimates for financial instruments such as mortgage-backed securities, credit default swaps, complex bonds and other derivatives.

Key components of this new credentialing program include compliance with the Financial Instruments Performance Framework that will help define “how much” work is necessary to provide supportable and auditable fair value measurements which will be reviewed through an ongoing Quality Monitoring process.

Who may obtain the CVFI credential?

Valuation professionals who perform fair value measurements of financial instruments, such as mortgage-backed securities, credit default swaps, complex bonds and other derivatives for financial reporting purposes, whether already credentialed or not, can obtain the CVFI credential as long as they are:

  • Members of the AICPA

  • Possess the requisite education and experience

  • Pass the CVFI credential exam.

Please visit the CVFI credential overview for more information.

What is the Financial Instruments Performance Framework?

The Financial Instruments Performance Framework (“FIPF” or “Framework”) is a practical non-authoritative framework that establishes documentation requirements and defines “how much” work is necessary to provide supportable and auditable fair value estimates for financial instruments. The Framework is designed to enhance consistency and transparency in the performance of fair value measurements to the benefit of the public interest.

It is mandatory for valuation professionals who have earned the CVFI credential to adhere to the framework when engaged (or assigned if an employee) by (a) an entity required to submit registration statements or filings to a national regulatory authority such as the U.S. SEC, UK Prudential Regulation Authority, or European Banking Authority, or (b) a privately held entity that prepares and issues financial statements in accordance with an accounting or regulatory standard to perform a valuation of a financial instrument or component thereof used to support management’s assertions made in financial statements issued for financial reporting purposes.

To which types of engagements do the CVFI credential apply?

The CVFI credential is designed to guide valuation professionals as they estimate the fair value of financial instruments for financial reporting purposes. This includes estimating the fair value of derivatives, structured products, securitized debt and more.
Financial statements issued for financial reporting purposes include, but are not limited to, financial reports issued by:

  • Entities required to submit registration statements or filings in compliance with reporting standards set by the U.S. SEC, UK Financial Reporting Council, or similar authorities

  • Privately held entities that prepare and issue financial statements in accordance with United States generally accepted accounting principles (U.S. GAAP) or the International Financial Reporting Standards (IFRS)

  • Any other engagement in which the individual is performing services as a valuation professional

Important: if a CVFI credential holder is engaged by a privately held entity that does not issue financial statements or other reports in accordance with U.S. GAAP, IFRS, or other standards (e.g., financial statements issued for regulatory reporting) and the engagement falls within the subject matter scope of the FIPF, the CVFI credential holder should follow the FIPF for the engagement or assignment.

If the CVFI credential holder elects not to follow the FIPF for this type of engagement or assignment, the CVFI credential holder must prominently display this fact and rationale in the final valuation report.

What are the minimum experience requirements to apply for the CVFI credential?

Conventional Pathway — Candidates must have a minimum of 3,000 hours of experience related to fair value estimates for financial instruments in the five years preceding the application for the CVFI credential.

Experienced Pathway — Candidates must have at least ten (10) years and 6,000 hours of experience related to fair value estimates for financial instruments.

Experience must be attested to by a partner or supervisor (or past partner or supervisor, if you changed employers). If a partner or supervisor is not available, peer attestation is acceptable.

What qualifies as “experience related to fair value estimates”?

For the purpose of the CVFI credential, experience related to:

  • Fair value estimates for financial instruments may include performing, supervising, or managing valuation engagements or assignments as a valuation professional

  • Review of valuations prepared by the firm’s valuation team

  • Reviews of valuations prepared by a third party, by management, by auditors, and/or auditor firm’s valuation team

  • Signing valuation reports

  • Consulting on, instructing, researching, developing thought leadership, and staff development on valuation matters related to financial instruments

What are the education requirements to obtain the CVFI credential?

The CVFI Body of Knowledge can be found in the CVFI Credential Handbook.

Conventional Pathway — You must have a bachelor’s degree, or equivalent, and undertake the CVFI education that covers the body of knowledge for the credential.

Experienced Pathway — You must have a bachelor’s degree, or equivalent, and undertake the required CVFI education that covers the FIPF.

The CVFI education is available in a self-paced virtual format and includes end-of-course exams that are required to obtain credit for completing the courses.

What courses cover the body of knowledge for the CVFI credential?

The six (6) courses the CVFI body of knowledge covers are:

  • Accounting Standards Related to Financial Statements and Fair Value

  • Current Expected Credit Losses (CECL)

  • Financial Reporting Standards, Market Organization, & Economics of Regulation

  • Audit Considerations

  • Valuation and Risk

  • Financial Instruments Performance Framework

Candidates pursuing the CVFI credential through the Conventional Pathway must complete all six courses.

Candidates pursuing the CVFI credential through the Experienced Pathway must complete the Financial Instruments Performance Framework course.

Will I need to take an examination to obtain the CVFI credential?

Yes. All candidates must successfully pass the CVFI credential exam to obtain the CVFI credential.

Conventional Pathway — This is an online timed exam with 120 multiple-choice questions. The exam is designed to test the candidate’s understanding of the guidance covered by the body of knowledge for the credential.

Experienced Pathway — This is an online timed exam with 60 multiple-choice questions that examines the candidate’s knowledge of the FIPF.

How is the CVFI credential exam administered?

  • The CVFI credential exams are timed, computer-based and non-disclosed exams that can be taken remotely

  • The questions and answers are not published nor are you permitted to share any of the information included on the exams

  • The grading process for the CVFI credential exams is immediate

  • You receive a “Pass” or “Fail” grade upon electronic submission of the exam

Are there additional education requirements that must be met to obtain the CVFI credential?

Yes. Required training on the AICPA Code of Professional Conduct and Valuation Standards1 must be completed within 30 days after applying for the CVFI credential. This training is included in the CVFI Credential Pathway bundles available in the AICPA Store.

1Not required for CPAs due to existing CPA license requirements related to the completion of ethics training.

How do I get started?

The required CVFI education, CVFI exams and required standards education courses are packaged together and can be purchased in the AICPA Store.

Recertification

What is required to maintain the CVFI credential?

To maintain the CVFI credential, please review the recertification requirements information.

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