Fund management CFA exam to be held twice a year
At the moment, the exams only take place once a year, in June. From 2003 candidates will also be able to sit CFA level 1 in December. However, the second sitting will be available at only 23 of the CFA's 200 global exam centers. In Europe these are to be Frankfurt and London.
The move was welcomed by the UK's Financial Services Authority (FSA), which requires asset management staff to pass CFA level 1 in order to be allowed to manage funds. "We've lobbied to have the exam put on twice a year for some time", says head of training David Jackman. "Employers want to get people working as soon as possible. It is also more convenient for retakes."
On average, slightly more than 50% of CFA Level 1 candidates fail the first time they take the exam. Combined with retakes being possible only once a year, this high failure rate meant that the FSA allowed candidates 30 months to gain the qualification after starting work as a trainee.
Jackman says this leniency is likely to end when the second sitting becomes available. The new time limit is likely to be 24 months.
As the only European country requiring that fund managers gain qualifications in order to practise, the UK is the most important base for the CFA in Europe.
In 2001, 37% of the 10,266 candidates taking the exams were located in the UK, 13% in Germany and 12% in Switzerland. France and Italy accounted for 5% and 3% of the total respectively. The exam is administered by the Association for Investment Management and Research.
