Since Covid-19 has struck the world, we all have seen the term “New normal” finding relevance in almost all fields of life. Some paused, some halted while some found a way out. CFA institute also gave out a list of “new normal” with a motive to give a fair chance to all its candidates. Subject weights, exam frequency and a shift from paper to online exams, the aspirants had to add and discount quite a lot in their exam preparations.
First came the long wait for the exams. Candidates had to push their attempt for exams until the CFA institute could deal with the world wide tragedy. This pushed their timelines considerably. The wait finally came to end with the declaration of the new policies.
Starting in 2021, the CFA level I exam will be offered in February, May, August, and November. The level II exam will be offered in February and August, and the level III in May and November. This declaration came as an opportunity to all the CFA aspirants to make up for the lost time.
But CFA institute had saved the best for the last. The CFA Level 1 exam results for February 2021 came as a shock to many. Minimum passing score which hovered around 65% historically was significantly increased to 72%. Thus, candidates targeting the historical MPS were caught off-guard and their best attempt also couldn’t suffice the conditions to get the desirable CFA exam results.
Next major change was a shift in the percentile of the candidates passing the exam. CFA results 2021 witnessed a drop in passing percentile to 44%. Though it has always moved back and forth depending upon the needs of the CFA institute, a drop to 44% from a 49% in December 2020, threw another challenge in the face of the aspirants. So even if you gave your best, but a bit better than you could have the potential to steal your victory.
One theory around the same point also indicates tighter competition in CFA. With an increase in MPS from 65 to 72% one should have expected a fall in the passing percentile of the candidates. Though as compared to December 2020 the passing percentile has gone up but historically the average stands at 40%. A jump from average 40% to 44% in CFA results 2021, clearly indicates sharp minds at work, and toughened up competition amongst candidates.
Along with a shift from paper to online exams, there were a few structural changes as well which reflected in the CFA Level 1 results. Earlier the paper was spread over 240 questions which was brought down to 180 questions. One must think how this change may affect CFA exam results. A simple math indicates that this step reduces the candidate’s margin of error. Say if your margin of error is 1%. Earlier this margin was spread over 2.4 questions but from now on just 1.8 questions would exhaust it all. Though miniscule, but this change also affected the outcome of CFA results 2021.
The effect of these changes were seen in the CFA Level 1 results. Many candidates were surprised as they failed despite scoring above the stipulated 65% MPS. These hidden changes made by the institute clearly reflected on CFA results 2021.
The crux of the matter is that, CFA institute has decided to tighten its credentials and let only the better than the best prevail. Candidates need to put their best foot forward in order to earn the charter. With the scope of error shrunken, even one single question can cost you your CFA exam result. So strap up and bring in your “A” game to crack the exams with flying colors.
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