Changes In The CFA Examination Starting 2023
- March 30, 2023
- Posted by: admin
- Category: Study Abroad
The CFA Institute has unveiled changes to its three-level financial analyst exam which will focus on practical skills and reduce the amount of time candidates study.
Starting in 2024, candidates will be able to pick between the programming language Python or analyst skills. Further, students who are two years away from graduating college will also be allowed to take the CFA exams. Below are some major changes-
1. Expanded eligibility for Level 1 Candidates
The level 1 CFA exam is now available to university students with two years left in their undergraduate program (23 months before graduation). Your ability to emphasize your dedication to a career in the investing industry early as a result of this move will increase your ability to land internships and entry-level positions
2. Streamlined Level 1 curriculum and additional practice materials
The level 1 content for 2024 has been improved with a practical relevance emphasis. Because of this, some basic financial concepts were taken out of direct evaluation. Although they won’t be included in the test, they will still be available as optional pre-reading materials to assist you to fill up knowledge gaps. Focus on & be tested on concepts that you don’t know. Concepts of the time value of money or basic statistics are pre-L1 – either due to graduation curriculum overlapping or easy enough to learn & use for non-commerce graduates.
Starts: L1 Feb 2024
3. Introducing the Practical Skill Modules to enhance real-world applicability
Level 1 candidates will need to finish at least one PSM starting in February 2024 that is intended to help them gain useful skills in fields like financial modeling or Python programming. You can select the PSM that appeals to you. Set aside 10 to 15 hours per week for your PSM. PSMs are independent of the core curriculum and can be finished whenever, but not later than the day of the exam and the day before the announcement of the results. To help you improve your practical abilities, they also contain videos, multiple-choice questions, guided practice, and case studies.
The ideal technique to learn skills that are either implicit (such as financial modeling and analyst skills) or that are required to know (Python Programming). Nearly every CFA would be required to study these on the job.
Starts: L1 Feb ‘24
4. Digital Badges introduced for improved recognition
Recognition status. I’ve known of parents, students & employers alike who require a slightly in-depth justification to accept the value of L1 or L2 cleared candidates. The annotation and labeling of this achievement may enhance the perception of candidates along their journey. Almost like a QR code.
5. Specialized pathways for Level 3 students starting 2025
Super specialization in finance. Choose between portfolio management, private wealth management & private markets. If you have a sense of the choice to make before L3, great! If not, you can choose any for now & then switch as you gain clarity when appearing for L1 & L2 exams.
6. Optional practice packs will be available from 299 $ starting May 2023.
It’s highly energizing and exciting to observe such changes, which appear to be advantageous for the sector as a whole and extremely encouraging for future CFA candidates.
You can also take advice from experts like Kavitta Mehtta at 3RDiConsulting, overseas education counselors.