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39 Percent of 37,573 Candidates Worldwide Passed December 2007 Level I CFA Exam

Charlottesville, Va., January 23, 2008 − CFA Institute today announced that 39 percent of the 37,573 worldwide candidates in the rigorous Chartered Financial Analyst® (CFA®) program passed the Level I exam they took in December.

To earn the CFA charter, candidates must sequentially pass three six-hour exams that are widely considered to be the most rigorous in the investment profession, as well as complete the minimum work-experience requirement of four years in the investment industry, sign a commitment to abide by the CFA Institute Code of Ethics and Standards of Professional Conduct, apply to a CFA Institute society, and become a member of CFA Institute.

The Level I exam is offered twice a year (June and December), while Level II and Level III exams are offered once each year (June). 

The number of candidates tested in December 2007 increased 25 percent from December 2006 when 28,082 sat for the exam. Since the December administration of Level I was first offered in 2003, the number of candidates sitting for the December exam has increased by 45 percent. 

Jeff Diermeier, CFA, president and CEO of CFA Institute, credits rising CFA Program enrollments to the value employers and investors recognize in the CFA charter, along with the growth of the financial services industry worldwide.

“The CFA designation is seen as a global passport that offers charterholders the ability to work anywhere in the world,” Diermeier said. “Employers and clients alike respect the designation because they recognize that CFA charterholders commit to uphold high ethical standards and have demonstrated mastery of complex topics.”

The exams cover ethical and professional standards, securities analysis and valuation, financial statement analysis, quantitative methods, economics, corporate finance, portfolio management, and performance measurement. CFA Institute recommends at least 250 hours of study per exam. On average, CFA candidates take four years to pass the three required exams. (More information about the CFA Program.)

By country/region, the pass rates for the Level I exam are:

United States: 41 percent of the 11,273 total exam candidates
Canada: 40 percent of the 3,078 total exam candidates
Europe: 41 percent of the 6,041 total exam candidates
Asia and Pacific Asia: 39 percent of the 15,120 total exam candidates
Central and South America: 41 percent of the 325 total exam candidates
Africa/Middle East: 28 percent of the 1,736 total exam candidates

The December exam was offered at 52 test centers in 29 countries worldwide.

“The CFA Program’s Body of Knowledge is determined by extensive global practice, which ensures that the curriculum and exams are relevant and timely,” said Bob Johnson, CFA, Deputy CEO of CFA Institute. “Employers find great value in this, and many require their professional staff to earn the CFA charter.”

Employers with the largest number of CFA charterholders include Citigroup; Credit Suisse; Deutsche Bank; The Goldman Sachs Group, Inc.; HSBC; JP Morgan Chase & Co.; Merrill Lynch & Co., Inc.; Morgan Stanley; Royal Bank of Canada; and UBS. 

There are more than 81,000 CFA charterholders in 126 countries and territories. Since the first exam was given in 1963, the average, global pass rates are 46 percent for Level I, 51 percent for Level II, and 67 percent for Level III.

On Thursday, January 17, CFA Institute ran congratulatory announcements in The Wall Street Journal, The Globe and Mail, Financial Times, and South China Morning Post to recognize the 6,427 investment professionals who completed the requirements to receive the CFA charter in 2007. (View the announcements.)

CFA Institute
CFA Institute is the global membership association that administers the Chartered Financial Analyst (CFA) and Certificate in Investment Performance Measurement (CIPM) curriculum and exam programs worldwide; publishes research; conducts professional development programs; and sets voluntary, ethics-based professional and performance-reporting standards for the investment industry. CFA Institute has more than 92,000 members, who include the world’s 80,000 CFA charterholders, in 132 countries and territories, as well as 135 affiliated professional societies in 56 countries and territories. CFA Institute has offices in Charlottesville, Va., London, Hong Kong, and New York. More information may be found at www.cfainstitute.org. (Bloomberg users can find CFA Institute at 497458Z).