• Monday, February 10, 2025
businessday logo

BusinessDay

CFA pass rate in May falls to lowest since 1963

CFA pass rate in May falls to lowest since 1963

The level I exam has the lowest pass rate of all three levels in the last ten years on average.

The pass rate of 25 percent for the Chartered Financial Analyst Level I exam administered in May was the lowest since testing began in 1963, according to data by the CFA Institute.

An average of 42 percent of applicants have passed the test in the last ten years, nearly double of the pass rate in May.

The 25 percent pass rate in May is also down from 44 percent for those who sat for the February examination.

Nearly 26,000 candidates sat for the Level I exam, which was administered at test centers around the world.

The pandemic upended the normal timeline of test-taking and preparation. Some candidates preparing for the Level I exam had to defer their test twice due to restrictions caused by the virus, according to the CFA Institute.

“While some impacted candidates were able to pass, we believe the stop-start nature of the deferred candidates’ studies is reflected in the overall passing rate,” the organization said.

Read also: Five takeaways from EFInA’s 2020 financial inclusion survey

There was no specific breakdown of the pass rate by country but the CFA program is rapidly gaining acclaim in Nigeria.

The CFA Program has the highest level of international legal and regulatory recognition of finance-related qualifications and is particularly popular among Nigerian professionals seeking to horn their skills and attract better-paying jobs in the financial services sector.

About 872 Nigerian Students sat for the first-ever Chartered Institute of Financial Analysts (CFA) Exams in Nigeria on Sunday, June 23rd, 2018. That figure has more than doubled since then according to anecdotal evidence from some finance professionals who have sat for the exams since then.

The CFA Program includes a series of three exams: Levels I, II, and III.

Passing all three CFA exams can lead to higher salaries and better job opportunities.

The level I exam has the lowest pass rate of all three levels in the last ten years on average. The level II exam has a 45 percent pass rate in that period while 54 percent of applicants who sat for the level III exam passed.

Candidates on average study 300 hours for each level and take four years to complete the series.

The pandemic upended the normal timeline of test-taking and preparation. Some candidates preparing for the Level I exam had to defer their test twice due to restrictions caused by the virus, according to the CFA Institute.

“While some impacted candidates were able to pass, we believe the stop-start nature of the deferred candidates’ studies is reflected in the overall passing rate,” the organization said.

Historically, the institute offered all three levels of the test on paper in June, and another chance to take the first part in December. After transitioning to computer-based testing, the institute now offers the exams more times throughout the year.

Ololade Akinmurele a seasoned journalist and Deputy Editor at BusinessDay, holds a crucial position shaping the publication’s editorial direction. With extensive experience in business reporting and editing, he ensures high-quality journalism. A University of Lagos and King’s College alumnus, Akinmurele is a Bloomberg-award winner, backed by professional certifications from prominent firms like CitiBank, PriceWaterhouseCoopers, and the International Monetary Fund.

Join BusinessDay whatsapp Channel, to stay up to date

Open In Whatsapp