Introduction
The Chartered Financial Analyst (CFA) program is a globally recognized credential for investment professionals. The CFA exam is notoriously difficult, with less than 50% of candidates passing each level. To maintain the integrity of the program, the CFA Institute updates the curriculum periodically to reflect changes in the financial industry. In this article, we will discuss the upcoming changes to the CFA Level 2 curriculum in 2022.
Overview of CFA Level 2 Exam
Before delving into the curriculum changes, it’s important to understand the structure of the CFA Level 2 exam. The exam consists of 120 multiple-choice questions divided into two sessions, each lasting three hours. The questions cover a wide range of topics related to financial analysis, including financial reporting and analysis, equity investments, fixed income, derivatives, alternative investments, and portfolio management.
Changes to the CFA Level 2 Curriculum
The CFA Institute regularly updates the curriculum to ensure that it remains relevant and up-to-date with the latest developments in the financial industry. The changes to the CFA Level 2 curriculum for 2022 are as follows:
Financial Reporting and Analysis:
The section on financial reporting and analysis has been updated to reflect the latest changes in accounting standards, including IFRS 16 and ASC 842.
Fixed Income:
The fixed income section has been expanded to include more topics related to credit analysis and risk management, such as credit default swaps and credit ratings.
Equity Investments:
The equity investments section has been updated to include more topics related to financial statement analysis, such as earnings quality and cash flow analysis.
Derivatives:
The derivatives section has been revised to include more topics related to options and futures trading, such as volatility and hedging strategies.
Alternative Investments:
The alternative investments section has been updated to include more topics related to private equity, hedge funds, and real estate.
How to Prepare for the CFA Level 2 Exam
Preparing for the CFA Level 2 exam can be challenging, but with the right study plan, you can increase your chances of success. Here are some tips to help you prepare for the exam:
Start early:
The CFA exam covers a vast amount of material, so it’s essential to start preparing early to ensure you have enough time to cover all the topics thoroughly.
Use the official curriculum:
The official CFA curriculum is the most reliable source of information for the exam, so be sure to use it as your primary study resource.
Take practice exams:
Taking practice exams is an excellent way to familiarize yourself with the format of the exam and identify areas where you need to improve.
Join a study group:
Joining a study group can be a helpful way to stay motivated and get support from other candidates.
Conclusion
The CFA program is highly respected in the financial industry and requires a significant investment of time and effort to complete. The CFA Institute updates the curriculum periodically to ensure that it remains relevant and up-to-date with the latest developments in the industry. If you’re planning to take the CFA Level 2 exam in 2022, be sure to familiarize yourself with the changes to the curriculum and follow a comprehensive study plan to maximize your chances of success.
