CFA® PROGRAM UPDATE
Lisa Plaxco, CFA, CIPM
Head, CFA Program
June 2019
2
CFA Institute and
Credentialing Overview
OUR STRATEGY AND OUTCOMES
3
Business models geared toward achieving investor outcomes
ST
RA
TE
GY
OU
TC
OM
ES
Educated, ethical members
at the top of their profession
High standards of entry
and professionalism
Regulations that align
firms and clients
Develop Future
Professionals
Through relevant
and accessible
credentialing programs
Deliver Member
Value
That accelerates the
professional success
of our members
Build Market Integrity
That accelerates the
professional success
of our members
CFA INSTITUTE CREDENTIALING PROGRAMS
4
Three exams
CFA® ProgramInvestment decision-making and strategy
Portfolio and wealth management
Institutional investing
Investment analysis
4,000 hours of
professional
work experience
Two exams
CIPM® ProgramInvestment performance and risk evaluation
Risk management
Manager search and selection
Investment analysis
Client relations
4,000 hours of
professional
work experience
Ethics
Investment roles
A clear understanding of
the global investment industry
Investment
Foundations® ProgramIndustry essentials
One online examNo experience
required
See program details at www.cfainstitute.org/programs
CFA PROGRAM GROWTH
5
As of 31 March 2019
AMERICAS
25%
EUROPE, MIDDLE EAST, AFRICA
17%
ASIA PACIFIC
58%
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
FY96 FY98 FY00 FY02 FY04 FY06 FY08 FY10 FY12 FY14 FY16 FY18
356,200
91,500AMER
63,200EMEA
201,500APAC
GLOBAL REACH
CFA Program has test centers in 193 cities in 95 markets, as of April 2019.
6
193
Total Cities
95
Total Countries/Regions
82
64
47
0
10
20
30
40
50
60
70
80
90
Americas EMEA Asia Pacific
Test Locations by Region
As of April 2019
Learning
Ecosystem (LES)
Future of Exam
Delivery (FED)
Continuing
Professional
Development (CPD)
Specialist
Micro-Credentials
CREDENTIALING 2030 INITIATIVES
7
1
2
3
4
Integrated learning
experienceData analytics
Contemporary
instructional design
Candidate convenience,
accessibility, and
service
Fidelity to practiceRisk management
and candidate growth
Role-based
competency framework
Post-CFA Program
specialized and localized
learning through societies
Post-CFA refresher
and advanced
specialization
Member CPD
(Refresher, Industry
Advances)
Role-relevant certificate
“stacks” for
charterholders and other
industry participants
Derived from the
CFA Program
8
CFA Program
THE THREE LEVELS OF THE CFA EXAM
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Ethics and Professional Standards
• Quantitative Methods
• Economics
• Financial Reporting and Analysis
• Corporate Finance
Investment Tools
• Equity Investments
• Fixed Income
• Derivatives
• Alternative Investments
Asset Classes
• Portfolio Management
• Wealth Planning
Portfolio Management and Wealth Planning
LEVEL I
Ethics
LEVEL II
Ethics
LEVEL III
Ethics
Knowledge/Comprehension
Application/Analysis
Synthesis/Evaluation
CFA PROGRAM PROCESS
10
Minimum
Passing
Score
Standard
SettingGradingExams
Education Advisory CommitteeCouncil of
Examiners
CFA Institute
and Member
Volunteers
CFA Institute,
Member
Volunteers, and
Consultants
Board of
Governors
Global
Practice
Analysis
Candidate
Body of
Knowledge
Curriculum
2019 REFRESHER READINGS
For this year’s curriculum updates, ethical and professional standards, portfolio management and wealth
planning, quantitative methods, financial reporting and analysis, and fixed income were the key topic areas,
with a total of 11 new readings added to refresh your knowledge.
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Application of the Code and Standards
Professionalism in Investment Management
Fintech in Investment Management
Overview of the Asset Management Industry and
Portfolio Management
Introduction to Equity Portfolio Management
Passive Equity Investing
Active Equity Investing: Strategies
Active Equity Investing: Portfolio Construction
Multiple Regression and Machine Learning
Analysis of Financial Institutions
Credit Analysis Models
THE PATH TO BECOMING A CFA® CHARTERHOLDER
12
Pass CFA
Exams
New
Charterholder
Become
a Member
Meet Regular Membership Requirements• Acquire 4,000 hours of qualified professional work experience
• Obtain 2 to 3 references who can attest to your work
Pass Level I Pass Level II Pass Level III
13
The Value of the Charter
THE VALUE OF THE CHARTER
CFA Program Benefits
14
GOLD STANDARDThe CFA® Program equips you not only to
enter the profession but also to excel
UNMATCHED EXPERTISEOur rigorous curriculum will equip you
for complex investment decisions
GLOBAL PASSPORTEarn waivers from regulatory agencies,
graduate programs, and more
CAREER RESOURCESGain access to career guides, thought
leadership, and continuing education
STRONG ETHICAL FOUNDATIONGain confidence and clarity in navigating
ethical issues
PRESTIGIOUS NETWORKConnect with an exclusive group of
outstanding investment professionals
CHARTERHOLDERS IN YOUR BUSINESS
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DO
WELL
Competent, motivated
employees contribute
to better organizational
performance (phi)
DO
GOOD
Builds client trust and
reduces enterprise risk
LOOK
GOOD
STAY
GOOD
Signals quality through
professional affiliation
Reinforces industry
Relevance and
commitment to
best practices
▪ Mastery of investment knowledge
▪ Four years of qualifying, practical work experience
▪ Consistent level of global excellence
▪ Annual attestation to code of ethics
▪ Minimized business risk through informed investment
decisions
▪ High standards of professional conduct
▪ Membership raises firm’s reputation
▪ Charterholders recognized as leaders in compliance and
trust
▪ Commitment to standards helps firms win and retain AUM
▪ CFA Program curriculum and CPD learning opportunities
continually updated to remain relevant
▪ CFA Program recognized by regulators
▪ Hiring charterholders helps build the next generation of
firm’s leadership
EMPLOYERS SEEK OUT THE CFA CHARTER
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“Enrollment in or completion of a CFA designation
would be an asset.”
Investment Banking Analyst
Goldman Sachs
“You have, or are in the final year of
[earning], your CFA designation.”
Equity Research Associate
Bank of America Merrill Lynch
“Completed [the CFA
Program] or working
toward CFA designation
is advantageous.”
Analyst
BlackRock
*Listings from CFA Institute JobLine
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Appendix
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CREDENTIALING LEADERS
• Establish and convey program strategy
• Develop and implement comprehensive business plan
• Liaise across credentialing, regions, channels, and other strategic functions
Rob Langrick, CFA, CIPM (Head)
Maintain relevance of all Credentialing program bodies of knowledge that drive curriculum and
exam development.
Barbara Petitt, PhD, CFA (Head)
Create an end-to-end learning experience by overseeing curricula based on practice analysis for all
credentialing programs.
Chris Wiese, CFA (Head)
Design and develop fair and rigorous measures of candidate mastery of the assigned curriculum for
all credentialing programs.
Peg Jobst (Head)
Deliver a high-quality testing experience through the secure, equitable, and accurate administration
and grading of the CFA Institute portfolio of exams.
CURRICULUM
AND LEARNING
EXPERIENCE
PRACTICE
ANALYSIS
CIPM PROGRAM
Tom Porter
(Head)
CFA PROGRAM
Lisa Plaxco, CFA, CIPM
(Head)
EXAM
DEVELOPMENT
EXAM
ADMINISTRATION
AND SECURITY
Stephen Horan, PhD, CFA, CIPM, CAIA
Managing Director, Credentialing
BUSINESS
OPERATIONS
Wanda McClenahan (Director)
Optimize performance and transparency to facilitate accountability, alignment, and agility
across Credentialing.
FU
NC
TIO
NS
PROGRAMS
EXAM SCHEDULE AND PRICING OVERVIEW
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Program Overview 2018–2019
CFA®
PROGRAM
Professional/graduate level
Pricing (US$)June and Dec 2019
enrollment fee early registration standard registration late registration
$450 plus $650 or $950 or $1,380
Timeline
Early
registration
deadline
Standard
registration
deadline
Late
registration
deadline
Exam
day
Exam
results
June 2019
(Level I, II, III)17 Oct 2018 13 Feb 2019 13 Mar 2019
16 June 2019
AMER/EMEA
15 and 16 June
2019
APAC only
I, II: Aug 2018
III: Aug 2018
Dec 2019
(Level I only)27 Mar 2019 14 Aug 2019 11 Sept 2019 7 Dec 2019 Jan 2019
PURPOSE OF PRACTICE ANALYSIS
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To ensure the continuous development of the
Global Body of Investment Knowledge (GBIK®)
To identify the relevant content for the CFA
Program Candidate Body of Knowledge
(CBOK™)
Conducted on an ongoing basis to ensure
the content of the GBIK and CBOK
remains current and relevant
THE PRACTICE ANALYSIS PROCESS
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Investment Professionals
Regulators
University Faculty
Member Associations
What are the knowledge,
skills, and abilities needed to
successfully practice as an
investment professional?
What are current
industry trends?
Research Foundation
Future of Finance
CFA Program Curriculum
CFA Examination
Candidate Body
of KnowledgeInput from Practitioners Global Practice Analysis
Global Body of
Investment Knowledge
CURRICULUM DEVELOPMENT
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Topic weights
Level of knowledge
Exam frequency
Identify curriculum
projects
How are concepts
applied in practice?
Pair academic
and practitionerInternal review
Initial Draft
External Reviews
Quality control
Author Selection
Reconcile CBOK and
DUO to curriculum
How should they be
taught in curriculum?
CLAs
Degree of
Understanding (DUO)
Just Qualified
Candidate (JQC)
General Marching
Orders (GMOs)
Gaps, Overlaps,
and Weakness
(GOW) Report
Learning Outcome
Statements (LOS)
Reading Outlines
Final Draft
EAC Working Body
Multiple reviewers
Multiple rounds
of review
Authors/
External ReviewersAuthors
Test Specification
Task Force (TSTF)
Curriculum Level
Advisors (CLAs)Practice Intensives Curriculum Directors
WHAT CAN I DO WITH THE CFA CHARTER?
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Charterholder Employment by
Primary Investment Practice Charterholder Top Job Roles by Title
As of March 2019
33%
19%
6%
3%
3%
3%
2%
1%
1%
1%
1%
18%
8%
Equities
Fixed Income
Private Equity
Derivatives
Real Estate
Hedge Funds
Structured Products
Commodities
Venture Capital
Foreign Currency
Indexed
Not Applicable
Other
21%
16%
6%
5%
5%
5%
3%
3%
3%
3%
Portfolio Manager
Research/Investment /Quantitative Analyst
Consultant
Financial Adviser/Wealth Manager
Risk Analyst/Manager
Corporate Financial Analyst
Investment Strategist
Manager of Managers
Trader
Sales Agent
BENEFITS OF EMPLOYING CFA CHARTERHOLDERS
The CFA charter differentiates candidates in today’s evolving and competitive global investment
management industry
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Expertise
• Broad skills for investment
analysis and decision-making
• Mastery of CFA® Program
curricula
• Global perspective
Trust and Accountability
• Client-first thinking
• Mastery of professional and
ethical standards
• Tenacity and commitment to the
profession
• Global best practice compliance
to safeguard client interests
Relevance and Recognition
• Continual CFA Program
curriculum updates
• Charterholders employed by
top investment firms worldwide
• Regulators accept the CFA
charter to meet certain licensing
requirements
TOP GLOBAL EMPLOYERS OF CHARTERHOLDERS
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Allianz SE
Bank of America Merrill Lynch
BlackRock
BMO Financial Group
CIBC World Markets Inc.
Citigroup
Credit Suisse
Deutsche Bank
Ernst & Young
Fidelity Investments
Goldman Sachs
HSBC
JP Morgan Chase
Morgan Stanley Smith Barney
PricewaterhouseCoopers
RBC
Scotiabank Group
TD Bank Financial Group
UBS
Wells Fargo
As of June 2018
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