CFA Level III Exam Pass Rate Remains Below Decade Average

The pass rate for the final level of the Chartered Financial Analyst (CFA) exam has decreased, falling further below the decade average. In August, 48% of candidates passed the Level III exam, compared to 49% in February, but still an increase from 47% in the previous year, as reported by the CFA Institute on Thursday. Historically, the pass rate for this exam has averaged 52% over the past ten years.

The Institute has noted a significant variance in success rates between first-time test takers and those who have rescheduled their exams. First-time candidates achieved a higher success rate, with a 55% pass rate compared to the overall average. Meanwhile, candidates who delayed or deferred their exams recorded a lower pass rate of 35%, according to the institute’s statement.

Similar trends were observed among Level I and Level II candidates, where those sitting the exams for the first time had better outcomes compared to those who retested. Chris Wiese, Managing Director for Education at the CFA Institute, stated, “We encourage candidates needing to retest their exam to do so as soon as is practicable for their circumstances, and to recommit to a focused study schedule that builds on prior studies while material remains fresh in minds.”

The recent pass rates show a recovery from the historically low success rates witnessed across all levels of the CFA exam during the pandemic period. However, the pass rate for Level III has yet to reach or exceed the 10-year average since 2020. The August examination was undertaken by almost 17,000 candidates across 452 testing centers globally.

During the pandemic, the Institute transitioned from traditional paper exams to computer-based testing. To achieve the status of a CFA charter holder, candidates must pass all three CFA exam levels and fulfill specific work-experience criteria. In the recent results, Level I candidates achieved a 44% pass rate for the August exam, while Level II candidates had a 47% pass rate.