The Chartered Financial Analyst (CFA) exam is a prestigious certificate issued by the CFA Institute. It is one of the most difficult exams in the world, but it is worth it. This year, the number of candidates is declining, and the salaries of CFA Institute executives are rising rapidly.
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. Theoretically, candidates can pass three levels in 18 months, as examination sessions are organized at intervals of 6 months, but in practice they must give four years to obtain a diploma.
The workload remains very high in preparation for CFA Finance: on average, more than 300 hours of work are required to complete each level (303 hours for level 1, 328 hours for level 2 and 344 hours for level 3). The following subjects are taught: quantitative methods, economics, financial analysis, corporate and market finance, portfolio management, etc..
If you want to take this exam, you will have to sign up for one of the two annual sessions held in June and December each year. On the day of the exam, you will have to join one of the 250 examination centers located in 90 countries and take 6-hour tests in English. After passing all three levels and after 4 years of professional experience in the financial sector, you will receive the prestigious title of Certified Financial Analyst (CFA).
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When cryptocurrency is no longer a way out for bankers, it is best to contact the CFA Institute
The cryptocurrency world is experiencing difficulties, especially after the collapse of Coinbase, the online digital currency wallet and cryptocurrency exchange on the Nasdaq list. The latter informed its employees on June 2 that it was going to suspend not only all hiring, but also cancel the already signed employment promises.
Therefore, the world of cryptocurrency is less attractive. And no wonder many employees, giving up everything to get into this area, were very sorry. We can take an example Neil Somani, who resigned from the Citadel in February with one goal: to work for himself and get rich thanks crypto. Then he decided to focus on the Terra blockchain, one of the most popular networks.
But last month, the $ 50 billion Terra blockchain fell. The results? Investors have suffered huge losses, and Neil Somani’s dream turned into a nightmare just weeks after the start of his project.. “I admit it’s a big failure, but it’s part of the game. I knew what I was doing when I quit my job to do cryptocurrency.” – explains the young man.
Therefore, executives working in the banking sector must find a new alternative to continue winning the jackpot. An alternative could be the CFA Institute.
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Why is the number of CFA candidates declining?
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 indicated ine CFA Institute Annual Report 2021 the number of registered persons recorded a decline of 35% compared to the level of registered before the pandemic in 2019. The Financial Times says the decline is likely to continue this year: 93,000 people passed the CFA Level I exams in 2021 against 160,000 in 2019.
According to Margaret Franklin, director of the CFA Institute, this decline is mainly due to imprisonment in China. Another anonymous source at the institute explains that although the number of entrants ” collapses because the new generation refuses to prepare for the exam with very low passability.
Read also: NEOMA is currently preparing for CFA Level III
CFA Institute: when a decrease in the number of candidates rhymes with an increase in the salaries of executives
Faced with declining recruitment and staff turnover, the CFA Institute is significantly increasing the salaries of its executives. Last Annual report published in 2021 shows that Margaret Franklin received a salary increase of 52% last year. Thus, it reaches $ 3.1 million. COO compensation increased by 65% to $ 590,000.
Although the leaders of the CFA Institute seem to have done well, not all staff members. Last year, the institute cut at least 100 jobs. The average salary of employees has increased, but not as much as that of managers.