The CFA Curriculum

The CFA study program encompasses many areascase studies, along with problem sets that correlate
of the financial industry, as well as a strong emphasiswith the reading and require practical application of
on ethics and professional responsibility. As we'vethe information. In addition, each session and reading
discussed briefly, the CFA candidate must pass threecontains specific learning objectives so that the
exam levels. The CFA Institute recommends thatcandidate can understand what he or she is going to
each candidate spend at least 250 hours inbe expected to do even before the lesson begins.
preparation for each level. The curriculum isThe CFA Institute includes multiple additional
self-study, which means that the candidate can paceresources, such as comprehensive outlines and
him or herself according to his or her own comfortindices, as well as a glossary.
level. However, as exams are only given on certainThe exams are almost textbook-perfect examples
dates, the candidate must create the pace to fitof Bloom's taxonomy in action. Exams, as we've
within those timelines. From the organizationaldiscussed, are given in June and December in multiple
perspective, the fact that the program is self-pacedlocations. Each exam is broken down into three levels
is very important. The candidate that completes allthat vary in both testing method and taxonomy
three levels successfully will prove that he or she islevels. For example, Level One exam questions are
dedicated, determined, and goal-oriented. From angenerally multiple-choice and cover knowledge,
education perspective, we know that any self-pacedcomprehension, and some analysis. Level Two are
program requires this dedication and determination,case-study questions that cover analysis and
not to mention the discipline to make study a part ofapplication, and Level Three are both essay and
every day life.case-based in nature, covering synthesis and
The next important aspect of the CFA curriculum isintegration. From an adult education standpoint, the
who determines topic areas, how those areas arefact that each exam has three levels that cover
chosen, and who writes the content for those topics.multiple testing methods and taxonomy levels is
First, the curriculum itself changes from year to yearimpressive. This shows us that the CFA Institute is
due to the changes that constantly occur on a globaldedicated to ensuring that each CFA leaves the
scale in the investment world. Major changes areprogram with not only knowledge but the skill
undertaken every five years - and only after anecessary to apply that knowledge in multiple
detailed analysis of the practice on a global scale. Insituations.
terms of curriculum development, a committee ofOne of the other benefits from a learning standpoint
active CFA charterholders determines content andis that the exams are given only in English. This may
the content is then written under their tutelage byseem tough to some, but the Institute maintains that
the CFI Institute staff. From a training andthis is a method for ensuring fairness and accuracy in
development perspective, many corporations wouldboth delivery of exam material as well as grading.
love to have a committee of practicing professionalsFrom a consistency standpoint, the English-only
who actively look at curriculum to keep it fresh. Andexams also ensure a high level of learning and
because of the changing nature of the financialapplication for candidates.
markets, the CFA curriculum must be in constantBefore we move on, let's look at the CFA curriculum
change, as well. This combination of practicingand exam structure as it relates to organizational
Subject Matter Experts as well as field analysis makebenefits. We've already determined that a self-study
the CFA curriculum strong, current, and in constantcurriculum requires a dedication and discipline that
change with the financial world.some people simply do not possess. But in regard to
The topics that are currently covered in the CFAthe content itself, a CFA candidate will be receiving
curriculum are varied, including ethical and professionalthe most up-to-date content available since
standards, statistics, analysis, economics, financialpractitioners compile it. This seems to take the onus
reporting, corporate finance, equity investment, fixedoff of the organization for ensuring that the CFA is
income securities and markets, derivatives, alternativeconsistently up to date. With the network of CFA
investments, portfolio management, and wealthprofessionals in addition to the curriculum, your
planning. Because practicing CFA's develop theorganization can concentrate on training in other
curriculum, the content tends to be on the practicalfunctional or behavioral areas. This is a definite
side, versus more theoretical knowledge that abenefit if you are planning to build a department
person might obtain in a university degree program.comprised of CFA's. Finally, the exam structure
Plus, the broad-based, generalist approach allows theensures that each professional has a detailed
CFA candidate to absorb topics in a way that keepsknowledge - but is able to apply that knowledge. As
them from being too product or market specific. Thisorganizational development professionals, we too
approach also allows the organization to create aoften see that there is a gap between knowledge
talent pool with broad knowledge that can be appliedand execution. In the case of the CFA, this gap is
in various settings, positions, and projects.probably very narrow.
The CFA curriculum is broken down into multipleNext, we will move from the curriculum to the
study sessions within the topic areas. Each of theserecognition and standard of the CFA program as a
sessions contains readings from Institute content,benefit to both the organization and the individual.
textbooks, professional journals, analyst reports, and