CFA Institute, the global association of investment management professionals, has reported 43 percent of the 59,627 candidates who took the Chartered Financial Analyst (CFA) Level I exam in December 2016 have passed. These successful candidates now progress to Level II of the CFA Program.
The December 2016 exam saw continued growth with an increase of 14 percent from the previous year in the number of Level I candidates tested for the CFA Program, a globally recognized, graduate level curriculum that links theory and practice with real-world investment analysis, and emphasizes the highest ethical standards.
“CFA Institute is dedicated to shaping a trustworthy investment management profession. The CFA Program prepares candidates from around the world to have the highest level of professional knowledge within the industry to better serve investors and society at large,” said Mr Anthony Serhan, CFA, President CFA Society Sydney and Managing Director, Research Strategy, Asia-Pacific at Morningstar.
“Rightfully, there is an increased focus in Australia to raise the standards of professionalism across the financial services industry. The strong increase of more than 40 percent in the number of Australian candidates from 1,695 candidates in 2015 to 2,387 sitting the December exam in 2016 is indicative of the industry’s desire to both improve standards and adopt globally recognized, tried and tested standards of professionalism like CFA.”
To earn the CFA charter, candidates must pass all three levels of exam, meet the work experience requirements of four years in the investment industry, sign a commitment to abide by the CFA Institute Code of Ethics and Standards of Professional Conduct, apply to a CFA Institute society and become a member of CFA Institute.
The CFA Program curriculum covers ethical and professional standards, securities analysis and valuation, international financial statement analysis, quantitative methods, economics, corporate finance, portfolio management, wealth management and portfolio analysis. Level I exams are offered in both June and December and Levels II and III are offered only in June. It takes most candidates more than three years to complete the CFA Program, and requires dedication and determination. (View historic pass rates)
The December 2016 Level I exam was administered in 104 test centers in 72 cities across 40 countries worldwide.
CFA Program curriculum reflects modern industry practice
The CFA Program offers a strong platform tailored to professionals across the industry, and annual updates to the curriculum ensure that the CFA charter remains the global industry standard. This year, three primary areas were updated and enhanced based on evolutions in practice: ethics, risk management, and Environmental, Social and Governance (ESG) factors. Each year, practicing investment management professionals, university faculty, and regulators are surveyed to identify what competencies are needed in an investment role today. As the profession evolves, investment management professionals are obligated to stay informed on industry trends, and the CFA Program 2017 curriculum updates (PDF) reflects advances in the skills necessary to meet the needs of clients.
