Question

Description:  Write a one to two page paper summarizing the following aspects of the Chartered Financial Analyst program presented by the CFA Institute (www.cfainstitute.org).

Paper should include:

1. Requirements for entering the program.
2. Requirements for earning a CFA designation.
3. Requirements for maintaining a CFA designation.
4. Topics covered in level I, II and III exams.
5. Exam structure for level I, II and III exams.
6. Recent pass rates for level I, II and III exams.
7. Cost of program materials, exam fees.
8. Review programs available including cost of programs.  These can be found outside of the CFA Institute website.

CFA Paper - Rubric
	Novice	Competent	Proficient
Quality of Content – 7 points possible.	Many incorrect or missing requirements.  Lacked detail. 0-2 points	Most aspects were included. Adequate detail was provided. 3-5 points	All aspects and requirements were covered in appropriate detail.    6–7 points
Quality of Writing – 3 points possible.	The paper has many grammatical and punctuation mistakes.  Proofreading is needed. 1 point	Punctuation and grammar adequate. Only infrequent or minor spelling or grammatical errors. 2 points	The paper contains few if any errors in grammar or mechanics. 3 points

Answer 1

INTRODUCTION

Chief Financial Analyst is the highest distinction profession in the field of investment management. It gives a strong understanding of advanced investment analysis and portfolio management skills. It is a self-study program divided into three levels of exams each step to become closer to chart-holder.

REQUIREMENTS TO ENTER THE PROGRAM

Educational Requirements- The candidate must fulfill at least one of the following requirements-

• Undergraduate
• Work Experience of at least four years
• Combination of both

Passport- The candidate must possess international travel passport

Medium of Exam- The exam takes place in English. The candidate must be ready for taking the exam in English.

Professional Conduct- The candidate must complete the Professional Conduct Statement to ensure that he/she complies with this requirement.

Lives in Participating Country- The candidate must participate from a country that takes CFA exam. This is because not all countries have the right to participate.

REQUIREMENTS TO EARN CFA DESIGNATION

In order to earn CFA Designation, the candidate needs to pass all the levels of exams that are conducted and must gain four years professional experience in decision making process. This allows the candidate to become a regular member at CFA Institute. This allows him/her to use CFA Designation.

REQUIREMENTS TO MAINTAIN CFA DESIGNATION

The people who have the CFA designation need to pay membership fees which runs in a cycle from 1 July to 30 June.

TOPICS COVERED IN CFA LEVELS EXAMS

• LEVEL I-
  • Ethical and Professional Standards
  • Quantitative Methods
  • Economics
  • Financial and Reporting Analysis
  • Corporate Finance
• LEVEL II-
  • Ethical and Professional Standards
  • Quantitative Methods
  • Economics
  • Financial and Reporting Analysis
  • Corporate Finance
  • Equity Valuation
  • Fixed Income
  • Derivatives
  • Alternative Investments
  • Portfolio Management
• LEVEL III
  • Ethical and Professional Standards
  • Economics
  • Fixed Income
  • Derivatives
  • Alternative Investments
  • Equity Investments
  • Portfolio Management

EXAM STRUCTURE

• LEVEL I

Consists of 240 MCQs, split into two 3-hour sessions, both of them are mandatory to be attended by the candidates.

• • Morning Session – 120 MCQs, covering all topics
  • Afternoon Session – 120 MCQs, covering all topics
• LEVEL II

The exam has total 21 item set questions

• Morning Session – 10 items set of questions
• Afternoon Session – 11 items set of questions

There are total 120 items (18 vignettes with 6 items each and 3 vignettes with 4 items for total 21 items). It is worth 360 points which is equal to the duration of the exam. The items are equally weighted, carrying 3 points each and no penalty is charged for incorrect answers.

• LEVEL III

It consists of item set questions and constructed response (essay):

• Morning Session – Constructed response (essay) question (usually between 8 to 12 questions each with multiple subparts) worth 180 points. (Each point value of each question is provided in exam book).
• Afternoon Session – 11 items set of questions (8 vignettes with 6 items each and 3 vignettes with 4 items for total 21 items).

PASS RATES

The pass rate for December 2018 exam-

• Level I – 45%

The pass rate for June 2018 exam-

• Level I – 43%
• Level II – 45%
• Level III – 56%

The pass rate for December 2017 exam-

• Level I – 43%

COST OF MATERIALS AND EXAM

The program enrollment fee is USD 450. Exam Registration fee for early comers is USD 650, standard rate is USD 950 and for late comers is USD 1,380. The exam registration fees covers the cost of study materials and tests and mock exams.