The Chartered Financial Analyst (CFA) exam is a prestigious certification issued by the CFA Institute. This is one of the most difficult exams in the world, but well worth it. This year, the number of candidates is decreasing, while the salaries of CFA Institute executives are skyrocketing.
All about CFA Finance
The CFA diploma is divided into several levels. It takes six months of intensive training to move from one level to another. In theory, candidates can complete the three levels in 18 months, as examination sessions are organized at 6-month intervals, but in practice, it takes four years to complete the diploma.
The workload remains very high for CFA Finance preparation, with an average of over 300 hours of work required to validate each level (303 hours for level 1, 328 hours for level 2, and 344 hours for level 3). Subjects taught: quantitative methods, economics, financial analysis, corporate and market finance, portfolio management, etc..
If you wish to take this exam, you will need to register for one of the two annual sessions organized in June and December of each year. On the day of the exam, you will need to join one of the 250 exam centers located in 90 countries and take 6 hours of English language tests. After you pass all three levels and after 4 years of professional experience in the financial sector, you will be awarded the prestigious title of Chartered Financial Analyst (CFA).
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When the cryptocurrency ceases to be a salvation for bankers, it is better to turn to the CFA Institute.
The world of cryptocurrencies is in crisis, especially after the collapse of Coinbase, an online digital currency wallet and Nasdaq-listed cryptocurrency exchange. The latter informed his employees on June 2 that he was going to suspend not only all recruitment, but also cancel the already signed job promises.
Therefore, the world of cryptocurrencies is less attractive. And it is not for nothing that many employees who have given up everything in order to get into this area regret it very much. We can take an example from Neil Somani, who left Citadel in February for the sole purpose of working for himself and getting rich through crypto. He then decided to focus on the Terra blockchain, one of the most popular networks.
However, last month the $50 billion Terra blockchain collapsed. Results ? Investors suffered huge losses, and Neil Somani’s dream turned into a nightmare just a few weeks after the launch of his project.. “I know it’s a big flop, but it’s part of the game. I knew what I was getting into when I quit my job to go into crypto,” explains the young man.
Therefore, executives working in the banking sector must find a new alternative in order to continue to hit the jackpot. An alternative would be the CFA Institute.
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Why is the number of CFA candidates falling?
The CFA Institute is a non-profit organization whose mission is to pave the way for investment professionals around the world by promoting the highest certifications in ethics, education and professional excellence for the benefit of society. »
As notede CFA Institute Annual Report 2021, the number registered recorded a 35% drop from the pre-pandemic level in 2019. The Financial Times specifies that the decline is likely to continue this year, with 93,000 people taking CFA Level I exams in 2021, compared to 160,000. in 2019.
According to Margaret Franklin, director of the CFA Institute, this drop is mainly due to restrictions in China. Another anonymous source at the institute explains that although the number of applicants ” crumbling because the new generation refuses to study for an exam with a very low pass rate.
Read also: NEOMA prepares for CFA Level III
CFA Institute: When shrinking candidates rhymes with higher executive salaries
Faced with a drop in recruitment and turnover, the CFA Institute is significantly increasing the salaries of its executives. Last Annual report published in 2021 show Margaret Franklin received a 52% pay raise last year. Thus, it reaches 3.1 million dollars. COO compensation increased 65% to $590,000.
While the leaders of the CFA Institute seem to have done well, not all of the staff. Last year, the institute cut at least 100 jobs. The average salary of employees increased, but not in the same proportion as that of managers.