Overview of CFA Program Overview of CFA Program Curriculum Development

Wendy L. Pirie, PhD, CA, CPA, CAIA , CFAChristopher D. Piros, PhD, CFAp , ,

Directors, Curriculum Projects, CFA Institute

Janet T. Miller, CFA,Partner, Rowland and Company

The CFA® Program Cycle: A Practice Driven Process

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Global Practice Analysis ProcessProcess

• Members• Employers• University faculty

• EAC• Employers• University faculty University faculty

• Other investment professionals

University faculty• Other investment

professionals Initial review and discussion

Mini-surveys, panels,

conference calls,

(Online),

interviews -

BroadA

• Approximately 20% of membership

• Executive Advisory Board

Broad annual survey

Approve changes

of membershipBoard

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Locations of Panel Discussion Meetings

Purpose of Practice Analysis Process

To ensure the continuous development of the Global Body of Investment Knowledge (GBIK) The GBIK is the comprehensive outline of knowledge for the investment 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 has been or is still being debated and may encompass views wellthat has been, or is still being debated and may encompass views well outside the mainstream.

To identify the relevant content for the CFA Program y gCandidate Body of Knowledge (CBOK) 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.

Conducted on an ongoing basis to ensure that the content of theConducted on an ongoing basis to ensure that the content of the GBIK and CBOK remain current

Bodies of Knowledge Based on an Analysis of PracticeAnalysis of Practice

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Bodies of Knowledge

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CFA Program Candidate Body of Knowledge™Knowledge

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Candidates & Members – Overall Global Ratios

North American vs. Non-North American

67/33

54/4682/18

67/33

Candidates Members

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The Curriculum Team

Educational Advisory Committee (EAC)

Project Consultants Project Consultants

Topic Area Experts

Authors

Reviewers

Staff

Curriculum Consultants

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Curriculum Consultants

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Curriculum Consultants

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Principles of Curriculum Development• A curriculum that is:• A curriculum that is:

Faithful to the practice analysis and CBOK Fair to candidates Valuable to members employers and investorsValuable 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 distance-learning global candidate base

T t bl Testable• Avoid curriculum materials that are:

Predominantly empirical/historical in nature Topical (current events oriented or survey articles) Topical (current events oriented or survey articles) Country specific and/or specialist in nature

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Learning Outcome Statements (LOS)

• Statements, using command words, as to what a candidate should be able to do based upon their knowledgeL l I K l d E l• Level I – Knowledge Example• “Identify the relationship among a bond’s coupon rate, the

yield required by the market, and the bond’s price relative to l (i di t i l t ) ”par value (i.e., discount, premium, or equal to par).”

• Level II – Application Example• “Evaluate whether mortgage-backed securities are under- or g g

over-valued using option-adjusted spread analysis.” • Level III – Synthesis Example

• “Explain the arguments for bond indexing and active bondExplain the arguments for bond indexing and active bond investing and recommend a bond investment strategy given the client’s investment objectives and beliefs.”

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Custom Curriculum

Custom curriculum gives us flexibility to:

• Publish only readings that are required for knowledge• 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

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Examples of An Adapting Curriculum

• Accounting separated from corporate finance in early 2000s

International Financial Reporting Standards

• Initial reference point is IFRS, U.S. GAAP is compared to IFRS

Impact of Financial Crises

• Increasing focus on non-normal probability distributions• Correlations among asset classes increase during crises

• Models of global investment taxation, estate taxes

Private Wealth Management

• Human capital

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Challenges

• Continuous development of the Global Body of Investment Knowledge by participating on GBIK collaborative website

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

• Serve as a curriculum author and/or reviewer

• Developing other specialized bodies of knowledge

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