CFA Institute Says Passing Rate Dropped For First Level of Exam

By Ian Katz

Jan. 28 (Bloomberg) -- A lower percentage of candidates passed the first test of the Chartered Financial Analyst exam, a three-step process aimed at gaining a hiring edge as job losses accelerate in the financial-services industry.

Thirty-five percent passed the initial test, down from 39 percent last year, the CFA Institute said in a statement today. Almost 50,000 people took the exam in December, a 25 percent increase from a year earlier, the Charlottesville, Virginia- based institute said.

“Since it’s a self-study program, it’s hard to say why pass rates increase or decrease,” institute spokeswoman Kathy Valentine said in an e-mail.

Candidates take the exam betting the certification can become a path to better jobs, higher salaries and a deeper understanding of finance. The not-for-profit CFA Institute recommends candidates spend at least 250 hours studying for each phase of the test. It costs about $2,500 to complete all three levels, which are given in June and December.

Demand for the certification rose as job losses mounted in the financial-services industry since 2007. Employment in New York City’s securities industry fell to 168,600 in December from 187,800 in October 2007, a decline of 19,200 jobs, or 10.2 percent, New York’s state comptroller said in a report today.

To qualify for CFA designation, a person must be employed in a financial job, such as a broker or an analyst, and have four years of relevant experience. Topics range from ethical standards and securities valuation to financial statement analysis and portfolio management.

To contact the reporter on this story: Ian Katz in Washington at ikatz2@bloomberg.net


Source: bloomberg.com