heck, they should just make the pass rate for all 3 levels limited to the top 25% only.
I think it is lack of motivation
50% is less ?
Not that I have passed I’m also glad to see pass rates going down. If morning essays are not presented in a concise, cogent response then person should fail. We need analysts with ability to communicate their ideas. Not more number jockeys
CFA is pretty clear on how they approach setting the MPS and that is certainly NOT how it’s done. I’d say declining L3 pass rates (and in general) are likely due to higher numbers of non-native English speakers every year, which may have more difficulty in a time pressure exam than the traditional exam taking. This is especially evident at Level 3, which has seen the highest drop off. I can’t imagine writing Level 3 in one of my second languages. There is no way I’d be able to pass with the same preparation. So as the program expands globally, I’d suspect the pass rate would decline, particularly in language heavy level 3.
I think it’s a little bit of everyting. And i say the BIGGEST REASON for the low pass rate is the misconception that “Level 2 is the tough one, Level 3 is just a walk in the park”… I don’t know who and when was this idea started but it’s such a lie! A lot of people were fooled to believe it’s easier and the rest get killed in the AM. NANA
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never heard that, did you start that rumor?
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Perhaps not in your area? i don’t know, but i used to hear so many people say that until i was in level 3 and other candidates are like “no, level 3 is just as tough!” Especially people who are not in the CFA program, they always say “now that you passed level 2, you are over the hump and you will be done in no time!”
I’m not saying that each year the CFAI decides the number of new charterholders and then sets the mps for level 3 accordingly, i’m just saying that it’s in their interest to keep the designation prestigious whilst simultaneously maximising their exam fees hence they’ve made level 3 harder and the pass rate has gone down from the 68% or whatever it used to be.
You’re citing unsupportable ideas. If fees were a motivating factor, they would pass more candidates in order to collect dues, which effectively go on for life.
This sounds intuitively correct, but I recall reading somewhere that the pass rates are no lower in foreign, non-English speaking counties. But then I cannot recall if that was for all exams or just Level III.
^ fees are $600 and dues are $275. Do the calculation. They do not want to dilute value of charter and hence we will see less and less folks passing level III.
This sounds intuitively correct, but I recall reading somewhere that the pass rates are no lower in foreign, non-English speaking counties. But then I cannot recall if that was for all exams or just Level III.
I understand that charterholders feel that there are more and more people passing the exam, implying a reduced value. I suspect that CFAI is doing all that it can to persuade them that things are not as bad. I guess the passing rate may even trend downwards from now. Candidates may have to do more to earn the charter.
This is not to say that the increasing number of candidates and increasing penetration into less developed markets may have an impact on passing rate. Based on this, passing rate could trend lower without CFAI’s intervention.
What are the statistics of pass rates by country? I’m curious to where this notion of “ESL is the reason for lower pass rates” comes from. Many who have English as a second language have no problem reading and writing in English.
What are the statistics of pass rates by country? I’m curious to where this notion of “ESL is the reason for lower pass rates” comes from. Many who have English as a second language have no problem reading and writing in English.
Many ESL people would certainly have no difficulty if their English skills are strong, but some with a weaker grasp of the language would certainly struggle with the AM paper. Lots of people around here with English as their first language were limited by time from their reading/writing ability. I can’t see how it’s possible for someone with a weak grasp of the language to easily overcome this. Like I said, if I was writing this exam in French, it would be a huge struggle for me, beyond how difficult it already is. And I read/write French at a reasonably functional level. I doubt I would have passed.
I don’t think CFAI releases pass rates by country, I took a look to see if there was data to backup my hypothesis already. But if someone finds something, please pass it on.
Ok, answered my own question. 2009 was the last time that CFAI released regional pass/fail breakdowns:
Link: http://www.cfainstitute.org/about/press/release/Pages/08182009_16388.aspx
Now that’s combined Level 1, 2 and 3. I imagine the differences are greatest in Level 3, but there is no data to confirm that. That said, Asia, South America and especially Africa/Middle East significantly lower the overall passing rate. There is your difference right there. Especailly with a large plurality of candidates writing form Asia.
Interesting that CFAI stopped releasing this info along with the results.
I don’t think the AM is much different from PM for L3.
As a ESL myself, i don’t think the AM requires you to have brilliant writing capabilities. Think about it, most of it is just template, circling an answer and give 2 reasons - and the reasons can directly pull from the vignette or recite the text book.
I think if an ESL can comprehend the vignettes, that person can probably answer AM similarly to multiple choice.
So again I come back to the idea that weaker study habits partly explain the decline in Level 3 pass rates.