2024 CFA Curriculum Update: Key Changes Explained | Zell

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      CFA Curriculum Changes Breakdown in 2024

      What Is CFA?

      CFA, or Chartered Financial Analyst, is a globally-recognised qualification. The programme CFA curriculum qualifies aspirants to get job roles as Financial Managers, Portfolio Managers, and Research Analysts.

      United States-based CFA Institute offers this certification all over the globe. Getting CFA certified can help people get jobs in insurance companies, investment firms, and financial advisor firms. A high-paying career in finance awaits the people who pursue a CFA certification. The CFA course is divided into three levels. 

      Read about the 6 Things You Need to Know Before Your CFA Exam to avoid any last-minute confusion.

      CFA Curriculam changes breakdown in 2024

      Why are CFA Curriculum Changes and Topic Weights Important?

      CFA often introduces changes in its curriculum according to the market standards. The changes boost the curriculum’s learning design to enhance the learner’s knowledge and skills. One of the major changes is that in the entire curriculum, the reading manual has been changed to bite-sized modules that include visuals and spreadsheets for easy and faster learning. 

      CFA Level 1 Topic Weights

      Here are the CFA Level 1 topic weights:

      • Ethical and Professional Standards – 15%-20%
      • Quantitative Methods – 8%-12%
      • Economics – 8%-12%
      • Financial Statement Analysis – 13%-17%
      • Corporate Finance – 8%-12%
      • Equity Investments – 10%-12%
      • Fixed Income – 10%-12%
      • Derivatives – 5%-8%
      • Alternative Investments – 5%-8%
      • Portfolio Management and Wealth Planning – 5%-8%

      CFA Level 1 Curriculum Changes 2024

      The Fintech in Investment Management now includes DeFi and blockchain content. The new curriculum has increased modules, and now there are 72 modules from 60 modules. 

      The three new learning manuals of the Economics and Corporate Issues are:

      LM28 – Corporate Structures of Ownership

      LM13 – Introduction to Geopolitics

      LM30 – Business Models

      There are ten new learning modules under the Derivatives section:

      • Pricing and valuation of futures contracts
      • Derivative instruments and derivative market features
      • Interest rate pricing and valuation
      • Pricing derivatives arbitrage, replication, and cost
      • Derivative valuation through binomial model
      • Forwarding contracts pricing and valuation
      • Derivative benefits and risks
      • Option’s pricing and valuation
      • Option replication 

      CFA Level 2 Topics Weights

      Here are the CFA Level 2 topics weights:

      • Ethical and Professional Standards – 10%-15%
      • Quantitative Methods – 5%-10%
      • Economics – 5%-10%
      • Financial Statement Analysis – 10%-15%
      • Corporate Finance – 5%-10%
      • Equity Investments – 10%-15%
      • Fixed Income – 10%-15%
      • Derivatives – 5%-10%
      • Alternative Investments – 5%-10%
      • Portfolio Management and Wealth Planning – 10%-15%

      CFA Level 2 Curriculum Changes 2024

      The topic of Corporate Restructuring has replaced the topic of Mergers and Acquisitions under the section Corporate Issuers. 

      Financial Statement Modelling has replaced Industry and Company Analysis under Financial Statement Analysis.

      A new topic on Cost of Capital is added in the curriculum.

      There are four readings added:

      Reading 1 – Introduction to Linear Regression

      Reading 15 – Capital Structure

      Reading 19 – Capital Budgeting

      Reading 21 – Return Concepts

      There are some major changes in the modules of Real Estate Investment, Corporate Restructuring, and Multiple Regression. 

      CFA Level 3 Topic Weights

      Here are the CFA Level 3 topics weights

      • Ethical and Professional Standards – 10%-15%
      • Quantitative Methods – 0%
      • Economics – 5%-10%
      • Financial Statement Analysis – 0%
      • Corporate Finance – 0%
      • Equity Investments – 10%-15%
      • Fixed Income – 15%-20%
      • Derivatives – 5%-10%
      • Alternative Investments – 5%-10%
      • Portfolio Management and Wealth Planning – 35%-40%

      CFA Level 3 Curriculum Changes 2024

      The Level 3 curriculum includes LIBOR and market reference rates. 

      Topics of Institutional Investors, Private Wealth Management, and Performance Evaluation are revised. 

      5 readings are removed from the curriculum while these 2 readings are added:

      Reading 30 – Risk Management Institutional Case Study

      Reading 22 – Private Wealth Management

      CFA is one of the most reputed and difficult courses in finance and accounting. CFA is considered difficult because of its rigorous training and the fact that every year’s curriculum changes. If you plan to register for CFA in 2024, you should know about the curriculum breakdown and its changes. 

      Conclusion

      The CFA is an excellent course for people looking forward to a lucrative career in finance. The CFA exam changes listed on this page will be helpful for all the prospective candidates of 2024.

      You can take the CFA course from Zell Education and get the globally-recognised finance certification. The course has an 80% passing rate and makes candidates job ready for the investment industry.

      FAQ

      Will CFA increase my salary?
      Yes, CFA is one of the most reputed and recognized courses in finance and accounting. Pursuing a CFA course helps boost a candidate’s salary package.

      Is CFA harder than MBA?
      Both CFA and MBA courses have their challenges. However, a CFA is considered much more difficult than an MBA because the specialization topics offer in-depth knowledge. Also, the candidates must secure at least 70% to pass the CFA course, while the passing percentage of the MBA is 40%.

      Does the CFA curriculum change every year?
      Yes, the CFA curriculum changes every year to enhance the knowledge and skills of the candidates according to the latest market trends and industry standards.

      Is CFA still in demand?
      India has become the third largest country where CFA is in demand after the USA and China. According to a study, the demand of CFA has increased by about 30% in the last 7 years and it is still growing.

       

      Partham Barot is an ACCA-certified professional. showcasing his expertise in finance and accountancy. he’s revolutionising education by focusing on practical, real-world skills. Partham’s achievements underscore his commitment to elevating educational standards and empowering the next generation of professionals.

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