CIPM FAQs

From a credentialing perspective, the rationale for an experience requirement is to enable candidates to acquire knowledge that is not explicitly covered in the curriculum and abilities that cannot be gained from or tested in a distance learning program. For example, the curriculum covers benchmark selection criteria and index construction methodologies in considerable depth but does not compare in detail the many capital market indexes compiled by various providers such as S&P, Russell, Wilshire, MSCI, and FTSE; candidates are expected to become familiar with the specific indexes that are pertinent to their work through on-the-job training.

What is the experience requirement?

In summary, candidates may satisfy the requirement by having completed either two years of professional experience in one or more positions substantially entailing performance-related activities, or at least four years of professional experience in the investment industry.

Why was the experience requirement modified?

CIPM is a specialized designation for investment performance professionals, and candidates complete a rigorous program of study designed to equip them for success in a variety of performance-related positions. However, for many existing and prospective candidates (such as investment consultants, compliance officers, investment operations staff, technologists, and marketing or client relationship managers), performance evaluation and presentation may be just one aspect of their work. By offering the alternative of four years’ professional experience in the investment industry, the revised experience policy recognizes performance evaluation and presentation as an expert domain without excluding qualified candidates who are not full-time performance specialists.

Doesn’t modifying the experience requirement dilute the prestige of the CIPM designation?

Candidates who master the CIPM body of knowledge are well versed in techniques of performance measurement, attribution, and appraisal and the provisions of the GIPS standards. In addition, those who have not completed two years of dedicated full-time experience in the practice of investment performance evaluation and presentation are required to have spent four years in positions that include responsibility for performance-related activities. Therefore, the CIPM credential remains a specialist designation representing the highest achievement in the field of performance measurement.

Does the CIPM program recognize experience that candidates acquired prior to passing the Expert exam?

Any relevant experience will be considered for the purpose of meeting the requirement, whether the experience was acquired prior to or after enrolling in the CIPM program or passing the Principles and Expert level exams.

I am a CFA charterholder. How does the experience requirement apply to me?

CFA Institute and the CFA Program have professional experience requirements similar to the CIPM Association’s four-year alternative. The CIPM experience requirement is waived for CFA charterholders and regular members of CFA Institute who are in good standing.

Whom should I contact if I have specific questions about my professional experience?

You may direct questions about the professional experience requirement to cipm@cfainstitute.org.

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CIPM Program and CFA Program

What are the differences between the CFA Program and the CIPM program?

The CFA Program is a generalist study and exam program for investment professionals, anchored by a practice-based curriculum and focused on the knowledge essential to the investment decision-making process. The study material is generally equivalent to graduate-level coursework, and includes ethical and professional standards; quantitative methods; economics; financial statement analysis; corporate finance; the analysis of equity, debt, derivative, and alternative investments; and portfolio management. CFA candidates’ mastery of the body of knowledge is tested in three six-hour exam.

The CIPM program is a specialist study and exam program for investment performance professionals. The candidate body of knowledge includes professional ethics; performance measurement, attribution, and appraisal; and the Global Investment Performance Standards (GIPS^®). CIPM candidates’ mastery of the pertinent body of knowledge is tested in two three-hour exams.

I am a CFA charterholder working in the field of investment performance evaluation and presentation. What value does the CIPM program have for me?

Investment performance professionals who have earned the CFA charter are already well equipped to practice competently. However, they may find the specialized CIPM study and exam program a useful means of updating and deepening their knowledge. In addition, if they supervise performance analysts, they may wish to “lead by example” and enroll in a program that will help their staff members achieve a higher level of competence.

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Exam Preparation

Will candidates be tested on the CFA Institute Code of Ethics and Standards of Professional Conduct or the CIPM Association Code and Standards?

CIPM candidates are subject to and will be tested on the CIPM Association Code of Ethics and Standards of Professional Conduct. The provisions of the CIPM Association Code and Standards are the same as those of the CFA Institute Code and Standards, with the exception that Section VII of the CIPM Association Standards of Professional Conduct refers to the CIPM designation, the CIPM exams, and candidacy in the CIPM program.

What method of exam preparation do you recommend? Should I use the courseware or the text readings?

Online courseware from CFA Institute and VCampus will help you improve your knowledge and analytical skills and prepare for the CIPM exams. The courseware offers a truly interactive experience with tremendous flexibility for alternative learning styles. The courseware brings the readings to life and includes a comprehensive glossary, practice problems, exercises, and downloadable text. However, we caution you against relying solely upon the courseware. Carefully studying the source readings after working through each online courseware lesson will provide you with a firm foundation as you prepare for the exams.

We strongly believe that studying the prescribed curriculum is the best way to prepare for the exams. In our experience, some candidates preparing for credentialing exams rely too much, or even solely, on preparatory or review programs and their associated notes. Although we recognize the value of preparatory courses and notes, candidates should view these resources only as supplements to, rather than substitutes for, the prescribed curriculum. Remember that the exams are developed directly from the curriculum and are consistent with the learning outcome statements (LOS) prescribed by the CIPM Association. There is no substitute for studying the original material.

I’ve noticed that some of the lessons have many learning outcome statements (LOS), while others just have a few. Does the number of LOS reflect the importance of the lesson or topic and the amount of time I should spend on it?

The number of LOS is not necessarily an indication of the importance of a particular lesson or topic. LOS are designed to guide candidates to the relevant areas of a lesson or topic and indicate what candidates should be able to accomplish. The CIPM question writers base exam questions on the topics identified in the LOS. Thus, candidates should use the LOS to guide and focus their study of the lessons and topics. The amount of time a candidate should spend on a particular topic area will depend on many factors, including the candidate’s familiarity with the topic. A candidate who works professionally with performance attribution will probably need to spend less time studying performance attribution than a candidate who works in an unrelated area. In addition, LOS differ in their scope of coverage; some LOS are much more broadly written than other LOS. Candidates should refer to the topic area weights for the percentage of the exams related to each topic.

How much time should I plan to dedicate to exam preparation?

The time needed to master the body of knowledge and prepare for the exams will depend upon each candidate’s background, experience, and study habits. With that caution, we estimate that a minimum commitment of 50 hours will be required at each level of the CIPM program.

Candidates who passed the Principles exam in 2006 averaged approximately 60 hours in preparation time. Candidates who passed the September–October 2006 Expert exam averaged approximately 73 hours in preparation time.

We do recommend that candidates use both the online courseware and text readings. Carefully studying each reading after working through each courseware lesson will provide a firm foundation as candidates prepare for the exams.

Why isn’t the CIPM Program offered in languages other than English?

CFA Institute has made known the fact that it is open to exploring, with other organizations which have been involved in investment performance standards, opportunities to offer the CIPM curriculum and exams in languages other than English.

I have begun studying for the exam and discovered that there are many formulas presented. Are candidates expected to memorize all of these formulas?

Candidates enrolled at the Principles level are expected to be able to perform the actions specified in the learning outcome statements. If a formula is required, then it should be committed to memory.

Certain formulas in the Expert curriculum need not be memorized because they will be accessible on the computer screen during the exam via pop-up exhibits.

The specified formulas will be shown exactly as they appear in the “List of Formulas Used” in the Resources section of the Expert courseware. Variable names will not be defined. For example, if a formula uses the expression 1 + b_i, the candidate is expected to know what b_i stands for.

This policy applies only to the formulas listed in our formula policy. Candidates enrolled at the Expert level are responsible for memorizing all other formulas used in the Expert curriculum.

In what order do the topics appear on the exams?

Topics are not tested in any particular order. The questions on the exam will not necessarily follow the order of topics presented in the curriculum.

Why do some learning outcome statements (LOS) contain command words that obviously will not appear on a particular exam? For example, “draw” is a command word that would not be testable in multiple choice or item set format.

All LOS use commands words, such as analyze or calculate, that tell you what you should be able to do after you work through the lesson. Even though candidates obviously cannot “draw” in a multiple choice or item set context, for instance, they can evaluate, analyze, or interpret a drawn diagram that is provided. Developing the ability to draw the diagram certainly improves the ability to evaluate, analyze, or interpret the diagram.

Are the practice questions in the courseware fair representations of the depth of knowledge required for the actual exam?

Many of the questions that appear on the actual exam may be more challenging than those included in the courseware. We strongly recommend that, in addition to using the courseware, candidates engage in thorough, careful study of the readings. We also recommend that candidates use the learning outcome statements as a guide to the specific topics on which they might be tested and the level of understanding required. The actual exam questions are based upon the curriculum and are written with the learning outcome statements in view.

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Grading the Exam

Do I have to pass each of the individual topic areas to pass the exams?

No. The total score on your CIPM exam is simply your number of correct answers. Testing professionals refer to this as a “compensatory” exam, wherein candidates who perform well in some topic areas can make up for lower performances in other areas. Nevertheless, be careful about any “test wise” strategy that recommends ignoring a topic in your study. Recovering from a zero score in a topic is very difficult.

Why doesn’t the CIPM Association let candidates know what score is required to pass the exams, and why don’t you let candidates know what score they achieved on the exam?

The minimum passing score (MPS) for each level of the exam is determined by the CIPM Association each period after the administration of the exams and after thorough psychometric analysis of the completed questions. Neither the MPS nor individual candidate scores are released. To release the MPS and individual scores would be unfair to candidates; the CIPM Association does not consider one passing candidate to be more (or less) accomplished than another passing candidate merely because of his or her ranking relative to either the MPS or other candidate scores. To release scores would inevitably lead to such ranking, which would be especially unfair for candidates taking the same exam in different years.

The CIPM program sent me feedback showing that I scored above 70 percent in two major topic areas and 50–70 percent in the third major topic area. Nonetheless, I did not pass the exam. How is that possible?

The major topic areas are not equally weighted on the exam, and a candidate’s performance in the topic areas where he or she did better may not have been sufficient to pull the total number of correct answers up to the minimum passing score. The CIPM program does not release the minimum passing score or individual candidates’ numerical results.

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Taking the Exam

How do I request testing accommodations for the exam?

CFA Institute processes and reviews all requests for testing accommodations under the guidelines of the ADA (Americans with Disabilities Act). Please see testing accommodations or contact us for further instructions.

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