One of the toughest exams in finance is about to get more topical, and for some, more complicated. Starting next year, Levels I and II of the exam to become a chartered financial analyst will include more in-depth questions on fintech, including machine learning and ethics tied to the use of technology within a work setting.
The Level III test, which focuses on portfolio management and planning, will include more questions on the latest practices in passive and active equity investment and professionalism in the investment management process. The changes will reflect an updated curriculum for the 2019 CFA Program.
“Fintech is no longer nice to know, but a need to have … a must have,” says Stephen Horan, managing director of credentialing at the CFA Institute. “Fintech is a class onto itself. It needs its own taxonomy.”
The CFA curriculum, which runs about 9,000 pages, has been updated to reflect these changes. In the past its fintech curriculum focused on algorithms and high-frequency trading. Now it includes machine learning, distributed ledger technology (blockchain) and cryptocurrencies.