nigelnyc wrote:
Although more difficult than the CAIA (I doubt by that much), the CFA attracts all college graduates who think they are going to make 100 Million dollars in five years and retire without knowing that they are hardly competent enough to take the exam in the first place. I think that might be part of the reason for the low pass rates. Perfect example, a friend of mine who is a lawyer wanted to make a career change and immediately he tells me “I think I am going to take the CFA”…how about getting a Master’s in Finance or Economics? Most people (I think) that take the CAIA have already tackled one or more levels of the CFA. The CFA is so popular it attracts everyone with $1000 and a dream.
So yeah, I am going to have to disagree with you a tad. Saying that the CFA program is not that much harder than the CAIA just blows my mind. Also, since you use the term “doubt” in your statement I am going to assume that you have either not taken any of the levels or have failed and would like to bash it to make yourself feel better.
I guess you could argue that I am biased since I am a charterholder, but I would like to just give you a heads up. This is nothing against the CAIA program, which I hope to complete and have passed the first level, but the amount of time and dedication for the CFA far supersedes that of the CAIA. I probably spent about 80-100 hours preparing for the level 1 CAIA, whereas I spent over 250 hours for all three CFA levels. I do have a colleague with the CAIA and he has informed me that the 2nd level is more challenging, so I am looking forward to taking it, but he has passed the first 2 levels of the CFA program and says that CAIA 2 is in between the difficulty of CFA 1 and 2.
I will agree with you that the pass rate is so low for the first level of the CFA since hundreds of thousands sit for that level around the world. But guess what, the people who pass level 1 are more than likely smarter than the average bear, however the pass rate for level 2 is almost as low and level 3 is also low and steadily declining. It is also only getting harder since the CFA institute is putting forth more effort to increase the difficulty so their brand does not get diluted. The people that are “hardly competent enough to take the exam” will probably not make it past the first level, so why use that to slam the charter? Also, just getting a masters in finance or economics doesn’t prove that you will be successful outside of academia, this just means that you are good at applying concepts in a vacuum.
Who cares that people want to try the CFA program, I don’t know why it seems to annoy you so much. You should try it, the material is extensive and enjoyable and you might learn a thing or two. By the way, it requires at least four years of experience to be awarded the charter even if you have passed all three exams and employers still do weight work experience above the CFA. The participation in the program is icing on the cake and simply demonstrates that you are willing to put forth the effort to improve or expand your knowledge of finance. I don’t think anyone claims that they are a master of the universe just for completing the program, and if that is their objective, then they probably won’t make it past the second level.
Cheers