CFA Program Overview by TanerauLatimer


									Practice Analysis and Curriculum
              Mission Statement

    To lead the investment
 profession globally by setting
the highest standards of ethics,
  education, and professional
                                   Page 2
             The CFA® Program

 A self-study, distance learning-based program
  that takes a generalist approach to security
    analysis and portfolio management and
emphasizes the highest ethical and professional
                                              Page 3
The CFA® Program Cycle

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Bodies of Knowledge Based on an
      Analysis of Practice
                                  Bodies of Knowledge

                    Global Body of Investment KnowledgeTM
The GBIK is the comprehensive outline of knowledge for the investment
profession. Investment professionals may use GBIK concepts at any stage of
their career - novice through expert, generalist and/or specialist. The GBIK
includes mainstream and frontier concepts based on research that is still being
debated and may encompass views well outside those of the mainstream.

                       Candidate Body of KnowledgeTM
The CFA Program CBOK is the core knowledge, skills, and abilities
(competencies) that are generally accepted and applied by investment
professionals. These competencies are used in practice in a generalist context
and are expected to be demonstrated by a recently qualified CFA charterholder.

        Specialized Bodies of Knowledge [e.g. Private Wealth, CIPM]:
These SBOK represent the knowledge, skills, and abilities (competencies) that
may be applied by investment professionals within specialty areas. SBOK can
include mainstream and frontier concepts.

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              Practice Analysis: What and Why?

 Most respected authorities in education, testing and certification
  recommend or require periodic practice analysis studies

 Focuses on the critical tasks performed by competent people
  working in the profession

 Establishes content validity – curriculum and exams must be
  linked to the knowledge and skills needed by practitioners

 Results in new GBIK & CBOK – the blueprint for curriculum and
  exam content

 The only way a topic gets into the CFA Program (and eventually
  tested) is if practitioners throughout the world deem it important.
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                Practice Analysis Process

 2006 and Prior
    Approximately 5-year cycle
    CBOK focus
    Develop Degree of Understanding Outline and Topic Area Weights
    Foundation for Curriculum and Exam Development

 New Practice Analysis Process
    Continuous, four-phase development process
    GBIK and CBOK focus
    GBIK and CBOK updated on an annual basis
    Test specifications will continue to be updated on a multi-year cycle
    Foundation of All Educational Activities at CFA Institute

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Phase 1 of Practice Analysis Process

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              Collaborative Community for Practice

 The purpose of this site is to continuously update and refine our
  Global Body of Investment Knowledge (GBIK) --- a living

 There are three main areas of interest:
   Documents: Contains the current GBIK in hierarchical form

   Discussions: Discussions about additions, deletions, improvements
         or a revised structure to the GBIK

   GBIK Wiki: Presents the GBIK topics in tree format

 Domain Moderators are responsible for the oversight of GBIK

 EAC Working Body assigned to domain topic and provides
  support to domain moderators.
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Collaborative Community for Practice

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Collaborative Community for Practice

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Collaborative Community for Practice

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Collaborative Community for Practice

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Collaborative Community for Practice

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Phase 2 of Practice Analysis Process

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                Employer Advisory Panels

 To obtain input on industry trends to ensure that the
  GBIK and CFA Program CBOK remain current

 To assist CFA Institute in better understanding
  employers’ expectations regarding the competencies
  and skills and abilities of investment professionals

 To learn more about how CFA Institute and the CFA
  program can better serve employers’ needs

                                                          Page 17
                Regional Expert Panels

 To assist CFA Institute in identifying changes
  necessary to ensure that the GBIK and CFA Program
  CBOK remain current

 To obtain input from a wide variety of professionals

 To ensure that the CFA Program CBOK reflects the
  diversity of practice within the investment profession

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          Locations of Practice Analysis Panels

   New York – December 2008

   Dubai – February 2009

   Hong Kong – March 2009

   London – October 2009

   Zurich – October 2009

                                                  Page 19
Phase 3 of Practice Analysis Process

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              Member Survey

Based on results from collaborative website and panel

Regionally stratified-sample to reflect membership

Over 2,000 responses with the following regional
       Americas        35%
       Asia Pacific    29%
       EMEA            36%

Output used by Practice Analysis Task Force to set
topic weights and specific knowledge areas
                                                         Page 21
Phase 4 of Practice Analysis Process

                                       Page 22
The CFA® Program Cycle

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CFA Program Candidate Body of Knowledge
             Ten CBOK Topic Domains

Ethical and Professional Standards

Quantitative Methods
Economics                             Investment
Financial Reporting and Analysis      Tools
Corporate Finance

Equity Investments
Fixed Income
Alternative Investments

Portfolio Management and              Portfolio
Wealth Planning                       Management

                                                   Page 25

 The topic focus and learning focus differ at each level

                  Topic Focus                Learning Focus
   Level I     Investment Tools              Knowledge
               Ethical Standards             Comprehension
   Level II    Asset Valuation               Application
               Ethical Standards             Analysis
   Level III   Portfolio Management          Synthesis
               Ethical Standards             Evaluation

 The curriculum at each level is organized into 18 study sessions

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              Principles of Curriculum Development

 A curriculum that is:
    Faithful to the practice analysis and CBOK
    Fair to candidates
    Valuable to members, employers, and investors
    Incorporates “best practices” in content and pedagogy

 The curriculum content should be:
    Globally relevant
    Generalist (as opposed to specialist) in nature
    Appropriate for a new charterholder
    Testable

 Authoring/selection/review processes that are extensive,
  intensive, and diverse in all topic domains

 Uses both candidate time and CFA Institute resources
  appropriately and effectively                              Page 27
             Curriculum Ground Rules

 Teach the knowledge and skills required of a generalist
    Identified in the Global Practice Analysis
    Defined by CBOK and DUO

 Select, develop and regularly review materials that:
    Are appropriate in a distance-learning environment for a global
      candidate base
    Are clear and accurate
    Contain numerous examples/problems with solutions

 Avoid curriculum materials that are:
    Predominately empirical/historical in nature
    Topical (current events oriented or survey articles)
    Country specific and/or specialist in nature

                                                                       Page 28
             Custom Curriculum

Custom curriculum gives us flexibility to:
     Publish only readings that are required for knowledge

     Expand pedagogy (examples, questions, problems)

     Revise readings based on practice analysis

     Update examples and scenarios to current environment

                                                              Page 29
            The Curriculum Team

Educational Advisory Board (EAB)
Project Consultants (PCs)
Assistant Project Consultants (APCs)
Topic Area Experts (TAEs)
Other Volunteers

                                       Page 30

 Continuous development of the Global Body of
  Investment Knowledge

 Participation on collaborative website

 Panel discussions on both CFA Program Candidate
  Body of Knowledge and Global Body of Investment
  Knowledge simultaneously

 Integrating other specialized bodies of knowledge

 Translating into comprehensive competency
  profiles/learning paths for generalists/specialists.
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To learn more about participating in the practice analysis
collaborative website and discussion forum, contact:

                      Carey Hare
       Project Manager, Curriculum Development
                     CFA Institute
                 Phone: 1.434.951.5286

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