First of all, cfa does not restrict anyone to voice their opinions. It is clearly written under standard 7 of ethics Second, just because cfai increased window and shortened time doesn’t mean it becomes ‘easy’ to pass. There is zero correlation. Third, cfai controls the results. If you get x% it doesn’t guarantee passing the exam. Your performance is seen in accordance with other candidates too. Fourth, just because a lot of people are taking cfa exam, it doesn’t diminish its value. A lot of people pursue masters degree, that doesn’t mean that there is no value of masters degree. So guys, if you wanna take the exam just take it. No knowledge is waste! There is value of cfa please dont get fooled by this video.
Thanks for watching and the comments… but you might want to rewatch it and all the way to the end. I say multiple times that these changes are (small) chips to the value and the CFA exams are still valuable.
Knowledge is good for the society as a whole. In my view, those already charterholders should use the designation to keep growing professionally and not as an artificial entry barrier, if more people have access to the knowledge conferred by the designations presumably financial crises will be less likely to happen or at least not to the extent that we have experienced them recently. Creating artificial stressful environments to replicate the real deal at investment banks is simply wrong, those practices have proved useless for productivity and will be eradicated in the long term.
Hi, I used to have the same opinion as yours. But I believe as far as CFA Institute controls the pass rates for all 3 levels, the number of qualified CFA would increase at a reasonable rate. And the institutete limits the exam attempts up to 6, obviously the management of institute knows that more and more people would like to take exams. I agree that '4.5 hrs' lower the difficulty of finishing exams but it may not lower the difficulty of passing exam.
@@BrianKehm except if someone is able to pass them they should be able to pass. The CFA is just greedy licensing anyways. It’s no different than other authoritarian licenses in other industries.
@@sanketsawant7475 that was how I felt also. I felt that more questions would actually increase my chances of passing as it was more chances to get things right. Fewer questions made me nervous due to increased impact of accidental screw ups etc.
I attained my a CFA charter holder in 2017 it is is true , the value of CFA is degrading because there are now hundred of thousands CFA around the world.And overall supply is more the demand. Its likely that CFA will soon be very common and would have least value. Also the overall salary offered is now decreasing at an exponential rate.....😭😭
a large part of this decline in value is driven by tech. a while back, all the smart kids wanted to go to wallstreet, where things like cfas are valued. however, in recent years, there has been a huge swing to tech. tech is an entirely different behemoth; it's much more cut throat in some ways in the sense that all the prestige of your background education and diplomas literally doesn't matter (specifically in earlier stage companies). nobody cares if you have a mba or a cfa; you go into a job interview an you're immediately hit with 3 case problems and 1 take home case which you either solve it and present solutions people can accept; or you're kicked out the door rather ruthlessly. don't let the facade of hoodies and tshirts fool you. so you can show up to a tech interview with a cfa printe on your cv, and it'll literally be shredded in the trash as nobody cares. you'll be given the same take home assignment with the same time to solve it; and you either deliver or you go home.
With all due respect, this guy seems like such a hater. He passed when the pass rate was prob in the 50%s, and he's complaining about the ppl who's pass rate is in the 20%s. If anything, it may be more challenging now.
I published this video well before the drop in pass rates. And if the lower pass rates continue, that more than offsets the small chips in value that I pointed out. You could have easily seen this by looking at the other comments.
@@BrianKehm Fair point. The May 2021 results did come out after your video dropped. With that being said, even before the pass rates were announced, I fully expected them to drop because there are less questions in the new model.
3:52 If a person fails a exam at any level they cannot register for the next consecutive exam window e.g. If I fail June 2020 CFA level 2 , i cannot register for the December 2020 exam , my next available appointment will be June 2021. Moreover, reducing the time means less question( which do not appear section wise) to attempt and less margin of error, making the exam more harder. There is no change whatsoever in the timing that affects your charter value. Follow MM, he provides great updates too
To UFC India…. Your MM has to market his courseware as the case is with other prep providers. In all fairness it ONLY pays if the prep provider is able to sensationalise the difficulty level of the CFA even if the pass rates go northward of 90%. Because that is their bread and butter. They would legitimise every possible argument to make case of their business proposition. Do not be fooled. If you believe asking less number of qs. is making it more stringent to pass then I would argue sitting for 6 hours instead of 4.5 is more strenuous and hence more challenging to pass the exam. Plus writing with pen and paper is certainly more challenging than typing on keyboard.
I failed in Feb 22, then I registered for Aug 22 and passed the Level 2 exam. And now I have registered for the Level 3 exam in Feb 23. So I am able to register for the next consecutive exam window. :-)
my apology in advance but all I heard is "oh I passed all 3 levels of CFA look how special I am and now they are making the exam more accessible?(and easier to to pass? although clearly that's counterfactual) are they trying to take my uniqueness away" :)
Than why didn't you as a voting member oppose the changes? Because it's easier to run your mouth on the backend and s#$^ on the candidates that earn their charters after you than actually be an active and constructive participant in a professional association?
I reckon he’s only concentrating on its ROE or its hurddle. It’s one demensional approach. It’s meaningful to challenge for the test for a long time, and it can be a great achievement itself. Which means dedication to get the designation will be recognized regardless of pass rate or ROE.
The only thing that could truly devalue the designation is if there was to be a sustained increase in the pass rate. Everything other than that is fairly minor and at the end of the day if a given change makes it easier or less rigorous then this will show up in a higher pass rate. But if no change in pass rate then all G.
not true, if you increase the amount of exams attempts you can take by 50%, increases the amount of passes by 50%, even if the pass rate per attempt is unchanged,
The average salary in Canada for a charter holder is $280,000. While the demand is rising according to research that tracked job postings requiring or holding a preference for CFA.
I think it's a supereasy to understand supply/demand situation. The premier employers in the finance field, investmentbanking giants like Goldman Sachs or PE giants like Blackstone receive far more applications than they have open positions for entry level analysts. So they can be and are very selective. And of course, no finance degree will make you a supreme price forecaster in capital markets (remember, > 90% of moneymangers underperform the S&P 500 over ten years). Reason is, capital markets are superefficient, often price forecasts are simply not possible no matter what qualification you have.
I agree with the transition to CBT. But not lowering the length of the exam. The CFA Institute justified this by comparing to portfolio diversification. So, why not make it only 20-30 questions? Also, as mentioned in the video, there are some secondary considerations for longer exams.
@@BrianKehm 20-30 questions for that breadth is ridiculous. They're also probably not trying to make radical changes all at once. I think in your head you just immediately jump to the conclusion of 20-30 because of the rule of thumb that 20-30 stocks makes for a diversified portfolio. And you end the description with "Hopefully the CFA designation isn't following in the footsteps of MBA degrees" which is just a downright simplistic view of these advanced degrees. Overall, disagree with most of the points in your video
Totally agree with you that the exams should be made longer not shorter. To pick the most resilient and military like candidate, they should do a 10 hours exam only for the CFA holders who passed the 6 hours exams.
So I think that’s why they have to raise the MPS, so that the number of CFA candidates who pass the exam is still reasonable. The increase in MPS and lower passing rate apparently have already started, so the passing rate drop from previously around 40-50% to around 20-30%. My speculation is that this is going to be a new normal, more exams but higher barrier and more difficult to pass the already difficult exam. To obtain the CFA designation is clearly getting more competitive.
Yep that drop in pass rates was surprising to see. If the lower pass rate continues, that should more than offset the small chips in value that I pointed out in this video.
@@BrianKehm exam is definitely harder and the same material is tested in less questions which means you have less room to make mistakes instead of lets say 2 concepts being question in 2 questions now in one so even if you know one but not the other you just lost a whole question which now represents a bigger % of the exam. your observation on endurance is inaccurate also because adrenaline norepinephrine and cortisol are increased when taking the exam helping endurance and would not be an accurate representation of parlayed focus in the workplace. honestly you're coming across as being bitter that the candidate pool is becoming larger and that you think it might dilute your own charter. with mps being around 73% on average and pass rates between 20-30% along with the fact that level 1 is becoming increasingly harder with regression being moved to L1 along with other things to weed out more candidates right at the start. also candidates across all 3 levels who have sat for paper based exam failed and then sat for computer based exam have all said the exam was harder now but apparently its so much easier because there are more times to take it throughout the year. Thats ridiculous. People genuinely have shit going on in their lives and sometimes cant make it, especially with the pandemic going on which is when they introduced more options. people are dying, losing work, getting sick and taking care of loved ones. the fact you think that decreases someones value and knowledge of thr topics tested on the exam seems literally insane to me and is very telling of which personal issues you're opinion is actually rooted in.
You’re entire argument was destroyed after the level 1 results came out this morning…twice as many exam windows but half the pass rate. Just one example of what are all weak points at best.
My arguments still hold since those changes still chip away at the value of the exams. Although, if that lower pass rate continues, then that should more than offset the little chips in value that I pointed out. Thanks for watching!
I personally don't think offering the exam more times in a year really does make it easier to pass a level as the curriculum isn't any different and you still have to put in the neccessary hours in to pass a level. Just because a candidate CAN take it four times in a year doesn't mean they will as in a candidate may wait to for a November exam instead of trying to cram it in for October just because they can. Just my take as a multiple time retaker for level 1 and now level 2.
People join, people leave, people come people go. that shouldn't mean that the value will be gone. Change is painful, yer inevitable. its an evolving institute. CFA's ethics are what us distinguished. I won't agree with you, but I like the facts you have presented.
You should take a look at the pass rates now; you mentioned it was around 50% during your time, but now it barely scratches half that figure if we consider the last 3 results published for level 1. That's a big highlight for the statistics. Personally, I would prefer taking an exam twice a year with a 50% chance of passing them than take it possibly 4 times a year with a 25% chance of passing. Moreover, there is no way in hell you are getting a chance at trying all 4 chances assuming you kept failing, the most chance would still be twice per year considering how long it takes to get the results out and when the registeration window for each batch starts and ends. That statistically reduces my chances to twice a year at most with a pass rate of 25% or less? Naaaah! Take me back to your time; it was much easier then I would argue.
Very flawed arguments and it all seems to be based on spite rather than substance. So what if a candidate has 2 chances to pass a year rather? So what it’s 10 times? Believing that tests should be limited just to reduce the opportunities to pass is old military bootcamp bs. Grow up. Fewer questions increases the confidence interval. So standards setting will leading to a harder pass mark all else equal. That’s just how standard setting works. The number of CFA candidates is growing every year. Yes so what, the CFA is based on a standard, not a quota system. This is all just “back in my day” bitter spite bs.
Hey Brian ! Do you recommend getting the curriculum books or the third party books or both? I don’t have a problem with the time and reading denser material but I don’t want to fork out 400$ on books that I won’t use/need. Thanks 😊
For the 2nd and 3rd exams, I only used study material from the CFA Institute (books, online practice problems, practice exams, etc.). If you’re good with self studying, you really shouldn’t need to pay for other materials. If anything, some external formula sheets might come in handy.
Good video. A couple issues I found a bit disingenuous. You're right about there being more chances to do the exam, but it being shorter will nor affect the pass rates, but just the volatility of the results. And even if the average score changed...the Mps would just offset it. You mentioned memory retention. If the exam took say 4 months to study for...that wouldn't change just because exams are more frequent. To give an exaggerated example:... someone isn't going to start studying 2 years before cfa level 1 just because they have the time. Just like no one would start studying 9 months before the exam ( seriously anyway).
Thanks for watching! I was going out on a limb with the memory retention point. But overall, I still think these changes are small chips at the value of the exams, all else equal.
Agreed! I put out this video before the lower pass rates came out. If sustained, that should more than offset the small chips in value I brought up in the video.
Thanks! The CFA institute provides all the materials that you need online. You can also order printed versions of the books. One thing that helped me pass was doing lots of practice problems online.
Thanks for the suggestion 👍 I have a lot of room to improve on the editing side. I still film and edit everything on my phone. I need to work on the zoom/cut timing. On average, if those are done well it should improve average viewer time. I see it often with more popular videos and channels. There’s some method to the madness 🙃
Nah but talk about that book in the background dog! Talk dirty to us baby! I need this guy to start a pod. I don't know if you watch or listen to the My First Million podcast with Sam Parr and Shaan Purri (last name is def spelled wrong)..... BUT, idk man, you're giving me MFM vibes. You've got, "the thing".
While I respect that you put out the video, but, I don't see how offering additional testing times weakens the substance material. This is something that DOES benefit humanity as it allows more people to get the designation and therefore help others. I'm sorry, but you seem like a crab in a bucket type, "my test was 'harder' (less available) so you shouldn't get that benefit" it seems like you're worried about more people getting the CFA and pushing up supply.
Thanks but all else equal, increasing the number of attempts slightly increases the chance of passing. As mentioned in the video, what I brought up are small chips in the value. Also, I published this before the passing rates dropped significantly. That more than offsets the chips I brought up.
Congratulations Ma'am, How to find out if someone has cleared the CFA level 3 exam?? Where we can see the list of candidates so that we can find out if someone is bluffing or not??
There’s a CFA membership directory but that doesn’t show non-members. I’ve passed the 3 exams but don’t want to pay for the membership. I’m not sure on a public directory for the different levels. I saved the confirmation email that showed the results. You might have to reach out directly to the CFA Institute.
@@BrianKehm Thanks brother, Can anyone you know there, mail ID or Whats up number, want to know about one candidate Thanks again, Namaste 🙏 😀 from India(Bharat).
Fair enough, but I haven’t heard compelling counter arguments. Why is it that every person that’s passed the CFA exams (that I’ve spoken with), agrees with my points here?
Did you watch the entire thing. Also, do you have a basic understand statistics? For some reason, everyone else that’s passed the exams agrees with me (that I’ve talked to).
That was one of two paths I considered taking after finishing the CFA exams. Having that financial knowledge paired with a better understanding of legal frameworks can lead to some great opportunities. Although, I took the data analytics and programming route instead. What’s best really depends on your personal and professional goals.
So I'm surprised you've come to this conclusion as a CFA. You're leaning towards the theoretical with your argument that what you're saying is true given the probabilities of your statement. You're just looking at the supply side of certification. The value is derived from the demand side => The consumers and the business who pay for the certification. The value is derived from the market. I can tell you as a senior that the interest for this certification is practically nonexistent. Maybe because I don't go to a target school, but this certification is very niche based. So yes there will be more analysts but does that necessarily decrease their value?
Thanks and out of pocket. They’re a bit expensive but relative to a college degree, not bad at all. And I’d say the CFA Designation is still more valuable than most degrees.
Seeing the current pass rates between 20-30% I would say you’re delusional. You probably passed when the pass rate was 50% and the MPS wasn’t too high. Complaining abour CFA chipping away in value is almost every charter holder is whining for. In short, it’s just plain simple population bias. Charters have held their degree and now want to shut that tap off or atleast severely limit it’s supply so they can still retain their high paying roles without much competition. Well, kudos to charter holders for their achievements but marking every question as must know in evaluation isn’t gonna help either, it will just drive perspective candidates away to some other courses and there’ll be always few like me who’ll stick around CFA. But lack of transparency from CFAI, combined with such videos paints a different story. The CFA candidates aren’t dumb either, they know what exactly is going on. Not being disrespectful to the institution or the charters but I guess they need to explain the ever rising MPS and such low pass percentages so that candidates know what they’re against while sitting for the exam instead of just treating it as an anomaly due to deferrals ( which clearly is bs since November 2021 results have a pass rate of 27% ) CFA has become much more difficult than it was so thank yourself for grabbing the opportunity to clear all your levels at normal passing rates rather than complaining about the depreciation of value. The value will anyhow depreciate if something better comes along and people will jump ship immediately, including the charters. CAs or MBA fin guys never complain about more people getting hands on that degree but CFA charters have a weird population bias.
There are free book resources for candidates online. The online practice questions are really useful as well. I’m also thinking about doing more formula videos down the road.
@@athifzulfikaradrain3421 once you’ve signed up to take the exams, the CFA provides online study material (I don’t have a link to that anymore). That’s what I used for the last two exams. But here are some of my personal notes that I shared online for level 3… frugalfortunes.com/cfa-level-3-notes-formulas-weights/
You have cfa yet you don't have any job so you are here on youtub making videos. Mr beast had nothing he started counting to 100000 for his first video and now he can buy entire cfa institute
Not to discourage, but looks like you're Reading and not looking into the camera or may be something else. In turn, making this video less intractive and just audio tape. Good work with the 📉 📈..
No discouragement at all and I appreciate the feedback 🙂 I write scripts for most of my videos so I’m concise and less likely to miss important info. I’m slowly making improvements on the video quality side. Thanks again for the comments 👍
