Has anyone else given this whole 3rd party business thing any thought?
1) CFAI, if I understand correctly, is now charging fees to these prep vendors (schweser, stalla, et al) to essentially be approved. Im not familiar with the materiality of these fees, but I'm pretty sure they exist.
2) They will now be bundling CR with exam fees, which will more than likely have a significant effect on the revenue of these 3rd party vendors, from 2 standpoints:
A) Candidates will tend to spend less on external prep material because they have now committed more funds to the thing, and
B) Fewer candidates will purchase 3rd party readings.. because they now have material covering the exam for which they have paid. I am not aware of the % of sales from this type of product exclusively, but I imagine it encompasses a substantial portion of total CFA Prep. products.
That said, I begin to think about the long-term advantages/disadvantages of 3rd party providers to the CFA brand. If, in a worst-case scenario, and I do not think this entirely likely, the 3rd party prep vendors decided to shut down the "CFA arm" of their operations, or perhaps the # of vendors was reduced to 1, then what would be the repercussions to our designation?
What advantages do 3rd party vendors pose:
1) Public awareness of the CFA brand from advertising.
2) Tools for Investment Professional's education (as a compliment to the CFA program)
3) Increased appearance of "do-ability" for potential candidates (more tools=more learning styles accomodated)
4)
5)
What dis-advantages do 3rd party vendors pose:
1) Increase in "test-passing" philosophy, vs. actual education
2) Decreased revenue to CFAI, which could be used to enhance the brand image and awareness through its own resources (which, granted, is a better option than advantage #1, provided they do it)
3) Potential inadvertant "cheapening" of CFA brand from poor advertising
4)
5)
Feel free to add/delete.. I thought this was an interesting topic, and I question the CFAI's decision to implement the two policies outlined above.. though I question them without having thoroughly thought through the matter. I was hoping others could contribute.
1) CFAI, if I understand correctly, is now charging fees to these prep vendors (schweser, stalla, et al) to essentially be approved. Im not familiar with the materiality of these fees, but I'm pretty sure they exist.
2) They will now be bundling CR with exam fees, which will more than likely have a significant effect on the revenue of these 3rd party vendors, from 2 standpoints:
A) Candidates will tend to spend less on external prep material because they have now committed more funds to the thing, and
B) Fewer candidates will purchase 3rd party readings.. because they now have material covering the exam for which they have paid. I am not aware of the % of sales from this type of product exclusively, but I imagine it encompasses a substantial portion of total CFA Prep. products.
That said, I begin to think about the long-term advantages/disadvantages of 3rd party providers to the CFA brand. If, in a worst-case scenario, and I do not think this entirely likely, the 3rd party prep vendors decided to shut down the "CFA arm" of their operations, or perhaps the # of vendors was reduced to 1, then what would be the repercussions to our designation?
What advantages do 3rd party vendors pose:
1) Public awareness of the CFA brand from advertising.
2) Tools for Investment Professional's education (as a compliment to the CFA program)
3) Increased appearance of "do-ability" for potential candidates (more tools=more learning styles accomodated)
4)
5)
What dis-advantages do 3rd party vendors pose:
1) Increase in "test-passing" philosophy, vs. actual education
2) Decreased revenue to CFAI, which could be used to enhance the brand image and awareness through its own resources (which, granted, is a better option than advantage #1, provided they do it)
3) Potential inadvertant "cheapening" of CFA brand from poor advertising
4)
5)
Feel free to add/delete.. I thought this was an interesting topic, and I question the CFAI's decision to implement the two policies outlined above.. though I question them without having thoroughly thought through the matter. I was hoping others could contribute.