The CFA Institute, the global association overseeing one of the most sought-after qualifications for firms in the financial district of London (known as the ‘City’), is overhauling its programme to give investment professionals more of an edge – the most significant changes introduced in its 60-year history.
A CFA (Certified Financial Analyst) credential is the most respected and recognised investment management designation in the world. The CFA programme is a master’s level qualification providing a strong foundation of advanced investment analysis and real-world portfolio management skills. It is one of the finance sector’s most gruelling qualifications, with candidates required to undertake around 1,000 hours of study over four years to prepare for exams.
Changes to the CFA programme include new practical skills modules being introduced for Level 1 and Level 2 exams focused on data science, artificial intelligence and Python programming. From 2025, candidates studying for a Level 3 qualification will be able to choose modules focused on portfolio management, private wealth and private markets.
Other changes include a reduction in the volume of study materials to ensure preparation remains at around 300 hours for each exam, as well as a new practice pack with 1,000 questions and mock exams.
The CFA Institute said it had found candidates were spending “significantly more than 300 hours to study for each level” of its programme. It said “best practices in instructional design” are being incorporated to ensure the content is “efficient, accessible and relevant”.
The changes to the CFA programme come after a survey of more than 340 people revealed concerns that the benefits to their careers of the qualification were diminishing, with 29 per cent saying it did not equip them with the skills or knowledge for their work.
While 55 per cent of the 343 respondents polled said the qualification was useful to their job, more than 57 per cent said that hardly one in five of their colleagues had a CFA, while 57 per cent also said that they would always or usually hire someone without the qualification.
Just 14 per cent said that the lack of a CFA qualification would stop them taking on a potential candidate. While some respondents to the survey described the qualification as the “gold standard” that gave them “bragging rights” over their colleagues, others said that it needed to modernise, embrace the digital age and become more relevant in Western markets as well as sectors such as investment banking and financial technology.
Although highly sought after, the CFA is not a prerequisite for some firms. Berenberg last year scrapped a mandatory requirement for its junior staff to undertake the CFA qualification, saying it would instead rely on its regular graduate training, senior staff and external experts.
President and chief executive Margaret Franklin said the changes are the “most significant” since the CFA Institute was formed in 1963. “We conducted extensive research to get feedback directly from employers, candidates, prospective candidates and the industry at large to inform how best to advance the knowledge and skills we provide to the investment professionals of the future,” said Franklin.
“We can say with certainty that candidates are exceptionally keen to get an edge in the market for employment and they are willing to work very hard for the advantage that the CFA programme provides.”
She added: “These changes will meet their needs by helping them to understand how to put investing concepts into practice on the job and be desk-ready on day one.” (The writer is our foreign correspondent based in the UK)
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