One of the biggest concerns the candidates face during their annual CFA preparation is the amount of time spent analyzing the recent CFA curriculum changes. But why does the CFA® Institute (CFAI) often change the curriculum? Show
Each year, the CFA Institute updates the exam material to reflect the ever-changing landscape of investment management and the market in general. Naturally, this raises the need to keep up with curriculum changes. Knowing what has changed and whether topic weights have been updated is critical when selecting study resources and ensuring that you only prepare what is required. This is especially important if you failed the CFA exam last year and don't know what to do next. But why are curriculum changes such a big deal? Why Is Knowing the Curriculum Changes Important?Knowing the curriculum changes ahead of time is beneficial in many ways. Aside from assisting candidates in understanding the importance of each topic for the exams, students looking to get a head start before the 2023 exam can see these changes in advance of their study preparations. But in some cases, knowing the changes is of greater importance, especially if you are:
Want to Join the ELITE Group that Pass the CFA® Exam? Your Level 1 Prep is Solved - and Free. Get everything you need to pass with our 90-day access. Start Now Changes to the CFA CurriculumThe CFA Institute typically updates its curriculum annually. Although the epidemic disrupted the Institute's curriculum in 2021, it did not change its course offerings. Despite this, the 2022 curriculum has undergone a considerable overhaul, and the subsequent changes will most possibly be carried out in 2023. Updated Topic NamesAlong with the changes that CFAI incorporates to the readings in each topic, specific tweaks have also been brought into the topic names. This change could either be made to update the name with the revised readings or simplify the terms. Old Reading NameNew Reading NameQuantitative MethodsQuantitative Methods (QM)EconomicsEconomics (EC)Financial Reporting and AnalysisFinancial Statement Analysis (FSA)Corporate FinanceCorporate Issuers (CI)Equity InvestmentsEquity Valuation (EV)Fixed IncomeFixed Income (FI)Derivative InvestmentsDerivative Investments (DI)Alternative InvestmentsAlternative Investments (AI)Portfolio ManagementPortfolio Management (PM)Ethical and Professional StandardsEthical and Professional Standards (ET)* Please note that the ones with background color are the updated namesSource: CFAI Curriculum Changes for Each LevelCFAI has made minor changes to the readings at each level, with a difference of about two to three topics. In 2022 many readings were updated from 2021 and will most possibly be carried out in 2023. Here's a look at the changes in each level: Level 1 Level 2 Level 3 Level 1 CFA Level 1 Curriculum changesThe CFAI updates the material covered in the CFA® exam annually to keep up with current topics and challenges that professionals in the investment management industry face. The CFA curriculum for 2022 was updated from 2021, as represented by the CFA Institute’s learning outcome statements (LOS). There have been some minor updates to the Level 1 curriculum, but nothing major. Some of them include:
Other revisions and additions include: Level 1 Curriculum Changes (2022)TopicsRevisionsAdditionsQuantitative MethodsProbability Concepts, Common Probability Distributions, Sampling and Estimation, and Hypothesis TestingOrganizing, Visualizing, and Describing Data and Introduction to Linear Regression.EconomicsAggregate Output, Prices, and Economic GrowthUnderstanding Business CyclesFinancial Statement Analysis (Earlier known as Financial Reporting and Analysis)Non-Current (Long-Term) Liabilities Corporate Issuers(Earlier known as Corporate Finance) Uses of Capital, Sources of Capital, and Cost of Capital—Foundational TopicsFixed Income Introduction to Asset-Backed Securities and Understanding Fixed-Income Risk and ReturnAlternative Investments Investing Methods, Fee Structures, and Performance AppraisalPortfolio Management and Wealth PlanningTechnical AnalysisThe Behavioral Biases of IndividualsEthical and Professional StandardsIntroduction to the Global Investment Performance StandardsEthics ApplicationLevel 2 CFA Level 2 Curriculum ChangesLike the Level 1 exam, the CFA Level 2 exam curriculum hasn’t changed much since 2021. Some revisions, additions, and the major updates include: Level 2 Curriculum Changes (2022)RemovedAddedMajor UpdatesExcerpt from “Probabilistic Approaches: Scenario Analysis, Decision Trees, and SimulationsBacktesting and SimulationEnvironmental, Social, and Governance (ESG) Considerations in Investment AnalysisPublicly Traded Real Estate Securities Mergers and Acquisitions Capital Budgeting Real Estate Investments Pricing and Valuation of Forward CommitmentsApart from these, here are some other minor changes:
Level 3 CFA Level 3 Curriculum ChangesThe Level 3 curriculum did not see much change this year (compared to last year). Some notable changes:
Other revisions, additions, and the major updates include: Level 3 Curriculum Changes (2022)RemovedAddedMajor UpdateProfessionalism in the Investment IndustryIntegrated Cases in Risk Management: InstitutionalYield Curve StrategiesThe Behavioral Finance Perspective Fixed-Income Active Management: Credit StrategiesTaxes and Private Wealth Management in a Global Context Topics in Private Wealth ManagementEstate Planning in a Global Context Overview of the Global Investment Performance StandardsWhat’s the Best Way to Get Started? Discover Your Learning Style in 3 Minutes. Start Now FAQsWho Makes Changes to the CFA Curriculum?Only the CFAI makes any changes to the CFA curriculum. The institute does this to stay up-to-date with current topics and challenges that the professionals in the investment management industry face. How To Stay Updated With the Latest CFA Curriculum Changes?The CFA Institute’s curriculum for the CFA Exam is updated annually and can be found on the CFAI website, which candidates can easily access. How Often Does the CFA Curriculum Change?There’s no clear guideline regarding the frequency of the syllabus being changed. Typically about 2-5% of the syllabus gets changed over a year. A good start would be comparing the LOSs over the span of two years. References from CFAI https://www.cfainstitute.org/programs/cfa/candidate/2022-level-i-curriculum-changes https://www.cfainstitute.org/programs/cfa/candidate/2022-level-ii-curriculum-changes https://www.cfainstitute.org/programs/cfa/candidate/2022-level-iii-curriculum-changes Read More About the CFA ExamCFA Exam Dates Are you worried about upcoming exam dates? For those confused by the changing timetables, here is a handy summary of new dates and frequencies for 2022–2023. CFA Scoring and Pass Rates Looking for the most up-to-date information on CFA scoring and pass rates? Check out the most recent statistics to know how much time you’ll need to study for the exam. CFA Eligibility and Requirements Want to know more about the eligibility criteria to sit for the CFA exam? Learn more about the eligibility, enrollment criteria, and all the deadlines. CFA Exam Registration and Cost Looking to learn more about the prerequisites for the CFA exam? Here is a detailed read regarding the registration criteria and the rest of the costs involved. What changed CFA 2022?We have updated data exhibits, added new cases, streamlined readings to be better learning experiences, and improved end-of- reading questions. All of these efforts better align the CFA Program curriculum with what CFA charterholders do daily on the job.
Does the CFA curriculum change every year?The CFA Institute's curriculum for the CFA Exam is updated annually and can be found on the CFAI website, which candidates can easily access.
Is CFA Level 2 the hardest?Unfortunately, the CFA Level 2 exam is a different beast, with a reputation to be the most challenging exam with the most material to cover. Many candidates failed at this hurdle given the step up in difficulty that is unknown upfront.
What changed in CFA Level 1 2022?Overall, the 2022's CFA Level 1 curriculum changes are not too significant, with 4-5 topics updated to to reflect current market practice and study patterns. Corporate Issuers, Economics, Alternative Investments, Derivatives and to a smaller extent Portfolio Management have notable changes from 2022's curriculum.
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