Mythical Ethics Adjustment

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Kabaka

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So, patiently waiting for my Level 3 results… coworker passed level 2 today and some of us got onto the discussion of the “Ethics Adjustment” - i.e. the supposed tipping factor if your score is border line that somehow a good result in Ethics will put you over the top irregardless of whether your raw score is < MPS.
Bottom line, while everyone has heard of this myth, no one here gives it any credibility. I think it’s a fanciful urban legend that wishful candidates happily delude themsevles with hoping for something (anything) to tip the scales on results day.
If anyone has any firm concrete (read: CFAI) proof, I’ll gladly eat my words.
 
zestzorb Wrote:
——————————————————-
> This is a L3 candidate? I’m lost for words.
My thoughts exactly. You made it through two levels successfully not knowing this?
 
Kabaka Wrote:
——————————————————-
> So, patiently waiting for my Level 3 results…
> coworker passed level 2 today and some of us got
> onto the discussion of the “Ethics Adjustment” -
> i.e. the supposed tipping factor if your score is
> border line that somehow a good result in Ethics
> will put you over the top irregardless of whether
> your raw score is < MPS.
>
> Bottom line, while everyone has heard of this
> myth, no one here gives it any credibility. I
> think it’s a fanciful urban legend that wishful
> candidates happily delude themsevles with hoping
> for something (anything) to tip the scales on
> results day.
>
> If anyone has any firm concrete (read: CFAI)
> proof, I’ll gladly eat my words.
read more post less
 
A) I stand corrected.
“The Board of Governors instituted a policy to place particular emphasis on ethics. Starting with the 1996 exams, the performance on the ethics section became a factor in the pass/fail decision for candidates whose total scores bordered the minimum passing score. The ethics adjustment can have a positive or negative impact on these candidates’ final results.
CFA Institute has a policy of not releasing either the minimum passing score or individual candidate scores. Consequently, CFA Institute does not release specific information about the ethics adjustment or the candidates who were affected. The adjustment has had a net positive effect on candidate scores (and thus pass rates) in most exam sessions. The published pass rates always take into account the ethics adjustment for borderline candidates.”
B) Bunch of tightly wound individuals on this site. Very happy I could provide you with something to do with your time. I’m humble enough to admit being wrong and willing to take my shots.
Oh, and I made it through 2 levels by not worrying whether the adjustment would push me over. :)
Have a nice day!
 
boooyah u showed them u really showed them thats how u do it mayne ur so kewl ………..can i be ur friend?
 
pimpineasy Wrote:
——————————————————-
> boooyah u showed them u really showed them thats
> how u do it mayne ur so kewl ………..can i be
> ur friend?
Yes. You may.
 
I’m a BELIEVER I don’t know how else I could have passed with this breakdown:
- Alternative Investments 18 - * -
- Corporate Finance 36 * - -
- Derivatives 36 * - -
- Economics 18 * - -
- Equity Investments 72 - - *
- Ethical & Professional Standards 36 - - *
- Financial Reporting & Analysis 72 - - *
- Fixed Income Investments 36 * - -
- Portfolio Management 18 * - -
- Quantitative Methods 18 - * -
 
You have seen s^&* look at this pass breakdown:
I checked max score and it can be max 81 points out of 120: (which is 67.50%)
Topic Max Pts <=50% 51%-70% >70%
- Alternative Investments 18 * - - max 3
- Corporate Finance 36 - * - max 8
- Derivatives 36 * - - max 6
- Economics 18 - * - max 4
- Equity Investments 72 - * - max 16
- Ethical & Professional Standards 36 - * - max 8
- Financial Reporting & Analysis 72 - - * max 24
- Fixed Income Investments 36 * - - max 6
- Portfolio Management 18 * - - max 3
- Quantitative Methods 18 * - - max
 
Sorry, but this may break the whole Ethics Adjustment argument:
Pass:
Q# Topic Max Pts <=50% 51%-70% >70%
- Alternative Investments 18 * - -
- Corporate Finance 36 - * -
- Derivatives 36 - * -
- Economics 18 - * -
- Equity Investments 72 - - *
- Ethical & Professional Standards 36 * - -
- Financial Reporting & Analysis 72 - - *
- Fixed Income Investments 36 - * -
- Portfolio Management 18 * - -
- Quantitative Methods 18 * - -
 
- Alternative Investments 18 * - -
- Corporate Finance 36 - - *
- Derivatives 36 * - -
- Economics 18 * - -
- Equity Investments 72 - * -
- Ethical & Professional Standards 36 - - *
- Financial Reporting & Analysis 72 -* -
- Fixed Income Investments 36 - - *
- Portfolio Management 18 - * -
- Quantitative Methods 18 - * -
PASSED level 2 - I think the ‘Ethics Adjustment’ was a major factor!!
I’m baffled by the results because it seems like I did horrible in the topics I thought I knew/did so well….I must have fell for so many tricks…the pressure got to me that day, big time. BUuut it doesn’t matter, because I’m moving to level 3 wwoooo
 
It’s specifically stated on the CFAI web site.
People shouldn’t look too much into the matrix since it doesn’t tell you exactly what you got in each topic. It’s the TOTAL score that matters.
 
I once read that the Ethics adjustment is like this:
Everyone with a score > MPS passes.
If your score = 1 point below the MPS and you pass Ethics, you pass.
If your score = MPS and you fail Ethics, you fail.
 
Minutes of a CFAI board of governors meeting that I found on the CFAI site. I printed it out, but I cannot find the file on the site anymore.
 
Yeah, I conceed it’s not a myth anymore. Tail between legs, and all that.
Though, of the 4 CFA charterholders and 2 candidates (myself awaiting Lvl3 and a coworker who just passed Lvl2) none of us had ever seen anything concrete about the adjustment before), just “heard” about it via the grapevine (or AF).
Though, I do wonder why the CFAI doesn’t just put more exam weight to ethics and explicity put more emphasis on it? Wouldn’t that accomplish the same thing without any ambiguity?
 
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