CFA Pass Rate Stays Close to Record Low at 43% for Final Exam

(Bloomberg) -- The pass rate for the final level of the chartered financial analyst exam remained close to a record low for the 59-year-old test.

In November, 43% of candidates successfully finished the series, the third-lowest pass rate for the Level III exam and below the 10-year average of 52%. Still, it was up from the 39% success rate for those who sat for the test in August, which remains the record low, according to the CFA Institute.

The Covid-19 pandemic upended the normal test-taking timeline in 2020 and 2021. In the past, 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.

“We are continuing to make great strides in seating candidates who have experienced an exam deferral due to the pandemic,” Peg Jobst, managing director for credentialing at the institute, said in a statement. “Our research shows that the longer the gap between sitting for exams, the lower the chances for success. This has often been beyond anyone's control.”

To become a charter holder, a candidate must pass all three exams and meet certain work experience requirements. More than 175,000 investment professionals have the distinction, according to the Charlottesville, Virginia-based institute.

Last month, Level II candidates got their results, with a 46% success rate for those who took the exam in November, up from the 29% in the previous testing period. Level I test-takers saw a 27% pass rate for those who took the exam in November, little changed from the 26% previous low.

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, 16,186 candidates sat for the Level III exam in November, the institute said. Tests were administered at 565 proctored computer-based exam sites in 325 cities around the globe.