The pass rate for the final level of the chartered financial analyst exam plunged to a historic low after the Covid-19 pandemic played havoc with candidates’ preparations for the test.
Only 42% of applicants passed Level III in May and June, the lowest ever for the exam, which has been administered since 1963, according to the Charlottesville, Virginia-based CFA Institute. It was the first time the final part of the exam was given using computers, and the success rate was down from 56% in December, when it was still administered on paper.
The results are in line with pass rates for Level I and II of the CFA exam, which also slid in the latest rounds of test-taking. Changes to test schedules due to the pandemic and resulting disruptions to study habits hurt pass rates across all three levels, according to the institute, with some Level I candidates having had their test-taking deferred twice before the latest exams. The pass rate for Level I also fell to 25%, the lowest ever.
“Fewer candidates passed at each level of the May exams than we might have expected given historical pass rate trends,” Peg Jobst, managing director of credentialing at the CFA Institute, said in a statement. “While some impacted candidates were able to pass, we believe the disrupted nature of the deferred candidates’ studies is reflected in the overall passing rate across all three levels.”
Passing all three CFA exams can lead to higher salaries and better job opportunities for finance-industry workers. On average, candidates study 300 hours for each level of the exam and take four years to complete the series. The Level III exam consists of eight to 11 vignettes with accompanying multiple-choice and essay questions, and takes almost four and a half hours to complete, with an optional break halfway through.
Worldwide, 21,603 candidates sat for the Level III exam in May and June, according to the CFA Institute.
Covid-19 shutdowns upended study habits and led to exams being rescheduled, with restrictions causing tests to be canceled even as late as this May—including all those scheduled to be held in India, one of the largest markets for CFA candidates. The next round of exams starts this Friday and runs through Sept. 8.
Historically, the institute offered all three levels of the test on paper in June, and another chance to take the first part in December. After transitioning to computer-based testing, the institute now offers the exams more times throughout the year.
“Exam preparation amidst pandemic restrictions is clearly very tough and impacted many candidates,” CFA Institute Chief Executive Officer Margaret Franklin said in the statement.