The CFA Institute has launched the new CFA course syllabus for its CFA Program which is the top credential for investment professionals around the world. The CFA curriculum changes released by this global association will be effective for candidates sitting for the CFA program in 2023.
Annually, the CFA Institute takes up Practice Analysis surveys of investment practitioners. These surveys provide first-hand updates about how the competencies and skillsets in the investment industry are evolving. Consequently, by making the necessary changes in the CFA course syllabus, aspiring CFAs are examined on the latest concepts and practices applicable to multiple roles played by investment professionals.
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How Will Candidates Benefit from the CFA 2023 Curriculum Changes
To understand fully how candidates will benefit from the CFA 2023 curriculum changes, it is necessary to look at it from the perspective put forward by Chris Wiese, CFA, Managing Director for Credentialing at CFA Institute. He elaborates on the reasons behind the CFA curriculum changes being introduced this year, saying:
“Graduates and early careers professionals pursuing the CFA qualification are building a firm foundation of investment knowledge that will support them as they begin their professional lives. Among this year’s key updates to the curriculum are an extensively remodeled Derivatives reading at Level I, often a particularly tough section for candidates, as well as a brand-new reading on geopolitics and updates reflecting the recent evolution in decentralized finance and blockchain.”
He goes on to say that candidates will also benefit from the new bite-sized modules that can be completed in one sitting, together with more visuals, spreadsheets, and opportunities throughout the learning materials to practice their skills.
Further, candidates for the CFA Program are provided access to wide-ranging curriculum materials through the Learning Ecosystem (LES). It is a learning tool that is available online and offers all course materials such as study planning tools, flashcards, mock examinations, and practice questions. The focus of these study materials is to help candidates evaluate their strengths and weaknesses while preparing for the exam.
Continuing the Evolution of the CFA Program – CFA Curriculum Changes
The release of the CFA curriculum changes in 2023 comes on the heels of the opening of registration for the 2023 CFA Program.
The evolution of the CFA program, therefore, continues as in the past. A lot of work has gone into practice analysis and curriculum development which in turn has led to major changes at Levels I and II for candidates sitting for the 2023 exam. The present changes, when viewed in tandem with the updates for the 2022 cycle will go a long way to better equip candidates with the necessary skillsets and knowledge that are in tune with the modern-day investment practice. This is possible by leveraging the experience provided by the Learning Ecosystem (LES) platform.
CFA Curriculum Changes 2023
Let us now dive into the CFA 2023 curriculum changes in detail.
CFA Level 1 Changes
There has not been any major overhaul of the CFA Level 1 curriculum apart from some small concentrated changes. The notable ones are:
- The program structure of the CFA Level 1 is now moving towards a Learning Module (LM) structure instead of Readings that have been prevalent till now. These modules are essentially small bite-sized lessons that can be completed quickly, say a few hours of morning study. Not only do LMs reflect the learning patterns of candidates but they also now contain more spreadsheets, visuals, and content that are designed for finance careers.
- The Alternative Investments and Derivatives sections have been broken down into the LM structure this year. Hence, the ‘number of readings/chapters’ comparison in 2023 vis-a-vis 2022 is no longer valid.
- 3 new readings related to Corporate Issuers and Economics have been added this year.
- There has been a minor content update on the Portfolio Management topic. The “Fintech in Investment Management” reading, for example, now includes fresh content on DeFi and blockchain.
Summing up CFA Level 1 Changes
As against 60 readings in 2022, there are now 73 Learning Modules in 2023. No readings have been removed from 2022 but some have been renamed, replaced, or changed to LMs. However, 3 new Learning Modules have been added, 2 in Corporate History and 1 in Economics. These are LM 13 – Introduction to Geopolitics, LM 28 – Corporate Structures and Ownership, and LM 30 – Business Models. Finally, 6 Learning Modules in Corporate Issuers have been updated.
CFA Level 2 Exam Changes
The Level 2 CFA course syllabus has gone through a rather small update this year. The main ones are given here.
- As in CFA Level 1 changes, the programming structure of Level 2 has moved towards Learning Module from Readings. Tools that are relevant to finance careers such as spreadsheets, visuals, and practical content have been included in the LMs.
- Specifically, Quantitative Methods and Alternative Investment reading have been reduced to bite-sized smaller Learning Modules.
- “Corporate Restructuring” replaces “Mergers and Acquisitions” in Corporate Issuers. The focus has now shifted to all types of corporate restructuring and how to align them with spreadsheets.
- “Financial Statement Modeling” replaces “Industry and Company Analysis” in Financial Statement Analysis and includes behavioral forecasting biases.
- “Cost of Capital: Advanced Topics” is the only new reading introduced. The course content for this model includes the methodologies of estimating the required rates of return for equities and estimating the weighted average cost of capital (WACC).
Summing up CFA Level 2 Exam Changes
There are 49 Learning Modules (LMs) in 2023’s as against 47 in 2022. 4 readings from 2022 have been moved to Level 1. They are Reading 1: Introduction to Linear Regression, Reading 15: Capital Structure, Reading 19: Capital Budgeting, and Reading 21: Return Concepts. A new Learning Module – LM 20 Cost of Capital – has been added.
Finally, 6 Learning Modules have been updated and significant changes made to 3 of them They are Multiple Regression LM (Quant), Corporate Restructuring LM (Corporate Issuers), and Real Estate Investments LM (Alt. Investments). The rest are not so major.
CFA Level 3 Curriculum
The CFA Institute has decided that there will be no CFA Level 3 curriculum changes this year. The CFA course syllabus will remain the same as in 2022.
Updates for CFA Curriculum Changes For 2024/2025
For the 2024 exams, the CFA program will be updated moderately with the goal being to maximize learning while maintaining the study time to the promised 300 hours per level.
CFA Level 1 Changes
Studies conducted by the CFA Institute show that most Level 1 candidate have mastered the basic contents of the Level 1 exam as part of their university studies or early career responsibility. Hence, to streamline the Level 1 curriculum and avoid duplication, some parts of the syllabus will be moved from the course content and offered separately as reference material for registered candidates.
These topics include the time value of money, basic statistics, microeconomics, and an introduction to company accounts that can be kept for later learning. Hence, CFA aspirants will have more time on their hands to focus on core subjects, advanced practice concepts, and new practical skills modules. Candidates who are not confident of these subjects in their CFA Level I curriculum may access this content as pre-read materials without any charge.
All candidates who appear for the exams in 2024 and later will be examined on the updated Level I curriculum.
CFA Level 2 Exam Changes
There is nothing significant in the CFA curriculum changes for Level 2. All current topics have been retained even though it has gone through the same review as Level 1 to improve the instructional design.
CFA Level 3 Curriculum
As of now, there are no changes in the CFA Level 3 curriculum. However, changes have been envisaged for 2025. Even though the core of the syllabus will be the same, candidates will be provided the opportunity to divert a part of their Level 3 effort to one of the three specialized parts – portfolio management, private wealth management, or private markets.
Summing up
To ensure that candidates can keep abreast of the CFA curriculum changes, the CFA Institute digitally publishes the syllabus on the LES and in print in partnership with Wiley. CFA aspirants can download the latest versions from the Resources Portal. When candidates register for the CFA exam, they receive the syllabus that matches the exam they will take. For example, all candidates appearing for the exams in 2023 will be tested on the 2023 curriculum.
Starting in September this year, an exclusive benefit will be provided to members in that they can access the curriculum in the form of Refresher Readings.
