The publication of the CFA Level I exam results for July 2021 was, to say the least, a huge surprise. The pass rate was the lowest ever recorded: 22%. Let's try to understand what might explain this shock for the 28,000 CFA candidates in this session.
In recent years, before the Covid-19 pandemic and the changes to the exam format, the pass rate for Level 1 was extremely stable, between 41% and 45%. The new format, offering an exam lasting 4 hours and 30 minutes (instead of 6 hours) and taking it on a computer with comfortable settings, intuitively led candidates to believe that it might be a little easier to pass the test.
One might therefore ask: Have the CFA exam questions become more difficult? Has the passing grade been raised? Has the disruption to candidates' preparation due to the numerous exam postponements impacted their results? Does the new exam window system completely change the traditional study plan, leaving participants disoriented in their preparation?
Let's draw some useful lessons from this failure for future exams.
The CFA Institute released a video explaining that candidates whose initial registration was specifically for the July 2021 session achieved the same score as before. The impact would only be visible on candidates whose exam was postponed to the July 2021 session due to cancellations during the Covid-19 pandemic and who obtained significantly lower scores.
First lesson: having more time to prepare for your exam is not a guarantee of success.
Candidates whose exams were postponed were given between 6 and 12 months of additional preparation time. Despite this "advantage," they appear to have failed at a higher rate.
Conclusion: it is the right preparation strategy that will make the difference.
Start by choosing the CFA exam window that suits you best; you should allow 6 to 9 months for preparation. Once registered for a specific exam session, you'll be more focused on your goal and less tempted to postpone your exam.
Design your CFA preparation plan of at least 300 hours, incorporating the appropriate tools (courses, learning materials, dynamic study groups, etc.) that are key to successful preparation. And don't forget to assess your score and its progress throughout the process.
Experts also attempted to analyze and estimate the Minimum Passing Score (MPS). Their results suggest that since the introduction of Computer-Based Testing (CBT), the minimum score required to pass the CFA® Level I exam has increased slightly.
Second lesson: make sure you achieve at least 75% correct answers on the CFA practice exams
These experts estimated that the minimum passing scores were closer to 73-74% in the latest CFA Level I exams.
Conclusion: To have a better chance of passing the CFA® exam, you should practice several times and assess your knowledge using mock exams that simulate the actual exam interface.
We advise you to aim for 75% to 80% correct answers the week before your exam, as we know that stress during the final exam can cause you to lose some points.
Finally, once you're ready, try to take the last day to relax and be fully focused on the official CFA exam.
Remember, the CFA is a marathon throughout which you must control your speed in order to reach your goal.