The number of exam candidates has decreased

The Chartered Financial Analyst (CFA) exam is a prestigious credential issued by the CFA Institute. It’s one of the hardest tests in the world, but it’s worth it. This year the number of candidates is falling as the salary of CFA Institute executives is rising.

All about CFA Finance

The CFA diploma is divided into several levels. It takes six months of intensive preparation to move from one level to another. In theory, candidates can pass three levels in 18 months, as exam sessions are arranged 6 months apart, but, in practice, they must allocate four years to obtain the diploma.

The workload remains very high to prepare for CFA Finance: more than 300 hours of work, on average, are required to validate each level (303 hours for level 1, 328 hours for level 2 and 344 hours for level 3). The subjects taught are as follows: quantitative method, economics, financial analysis, corporate and market finance, portfolio management, etc..

If you want to take this exam, you must sign up for one of the two annual sessions organized in June and December of each year. On exam day, you will need to join one of the 250 exam centers located in 90 countries and take a 6 -hour English exam. Once you have passed all three levels and, after 4 years of professional experience in the financial sector, you will be awarded the prestigious title of Chartered Financial Analyst (CFA).

Also read: CFA Finance (Chartered Financial Analyst): benefits and methods of acquisition

When crypto is no longer an escape route for bankers, it is better to turn to the CFA Institute

The cryptocurrency world is going through a binding, especially since the collapse of Coinbase, an online digital currency wallet and cryptocurrency exchange listed on the Nasdaq. The latter informed its employees on June 2 that it would suspend not only all recruitment but also cancel the job promises already signed.

The world of cryptocurrency is therefore less attractive. And for good reason, many employees who abandoned everything to get into this field, are deeply remorseful. We can take the example of Neel Somani, who resigned from the Citadel in February with only one goal in mind: to work for himself and get rich thanks to crypto. He then decided to focus on the Terra blockchain, one of the most popular networks.

However, last month the $ 50 billion Terra blockchain crashed. Results? Investors suffered huge losses and Neel Somani’s dream turned into a nightmare just weeks after starting his project.. “I admit it was a big failure, but that’s part of the game. I know what I got into when I quit my job to make crypto,” explanation of the young man.

Executives working in the banking sector must look for new alternatives to continue to pocket the jackpot. The alternative could be the CFA Institute.

Also read: 12 hours a day and 6 days a week, JP Morgan’s recommendation to be good at his job

Why is the number of CFA candidates falling?

The CFA Institute is a non-for-profit organization whose mission is to enable investment professionals around the world by promoting the highest certification in ethics, education and professional excellence for the ultimate benefit of society. »

As indicated bye CFA Institute annual report, for 2021, the number of registrants recorded a decrease of 35% compared to the level of registrants before the pandemic in 2019. The Financial Times indicated that the decline is likely to continue this year: 93,000 people took the CFA Level I exams in 2021, compared to 160,000 in 2019.

According to Margaret Franklin, director of the CFA Institute, this decline is largely due to incarcerations in China. Another anonymous source within the institute explains that, while the number of applicants ” fallen is because the new generation refuses to prepare for the exam with a very low pass rate.

Also read: NEOMA is now preparing for CFA Level III

CFA Institute: When the decrease in the number of candidates corresponds to the increase in executive salaries

Faced with falling enrollment and turnover, the CFA Institute is significantly increasing the salaries of its executives. The latter Annual report published in 2021 shows that Margaret Franklin received a salary increase of 52% last year. So it came to 3.1 million dollars. COO compensation increased 65% to $ 590,000.

While CFA Institute executives seem to be doing well, not all employees are. The institution cut at least 100 jobs last year. The average salary of employees increased, but not in the same proportion as among executives.

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