08/03/2021
The CFA exam sees record failures, setting candidates on edge.
CFA exams, the gateway to many investment analyst jobs on and in the City, have long had a high failure rate. Even so, the recent high water mark has prompted a look back. Theories advance faster than tough exam questions or insufficient study. Over the past decade, the average failure rate was 58%, but this year was the highest (66%).
There's a question of whether the badge is still worth 900 hours of study and $3,450 in fees. Only one in five candidates got the before the latest results.
This could be related to the pandemic, which delayed exams for 300,000 students. In addition, less commuting and office chatter meant more time for studying. Some unhappy flunkies suspect Institute revenue maximisation. The exam had about 55,000 applicants, 2/3 fewer than normal. The CFA Institute relies on credential programs for most of its revenue - 85% in the years before Coronavirus - and has had to cut a fifth of its staff. If you fail, you have to retake the test for $1,000.
The proportion of candidates who fell short this year is even higher than usual
