This month, we reflect on both the successes and challenges for our global network in FY22 and forecast what’s in store for the first few months of FY23.
ADVANCING THE CFA INSTITUTE STRATEGY
A year ago, we shared that we were refining our strategy and honing our focus on leading the industry through our research, advocacy, and standards; developing world-class learning products; enriching the learning experience of our candidates and members; and cultivating communities across the world. Any good strategy adapts to meet the demands of the market, and this underscores the importance of societies recognizing the opportunities of their markets to advance the strategy and meet unique local stakeholder needs. In turn, we increase our relevance and influence at both global and local scales.
Shaping the Future of the Industry and Profession
A primary tool for shaping the industry and the profession is through the establishment of global industry codes and standards. CFA Institute has, of course, long set the gold standard for ethics and professionalism among investment professionals. The call for greater ethics and transparency in our industry is louder than ever. In FY22, our Research, Advocacy, and Standards (RAS) teams launched the Global ESG Disclosure Standards for Investment Products as well as the DEI Code for the US & Canada, with 46 signatories including CFA Society Boston and CFA Montréal.
Advocacy and research also play important roles, of course. One way we measure our impact in this space is through relevant media coverage of the RAS division’s work. As of 31 July, we have met our goal to increase the number of citations or articles highlighting CFA Institute’s RAS efforts in influential media and industry sources. This year, we surpassed our goal by more than 48%, for a total of 925 “Tier One” placements.
Some local societies have made big waves in this space as well. Media coverage of research, strong relationships with regulators and industry leaders, and pushes for greater equity, inclusion, and sustainability within markets all paint a collective picture of the increasing influence societies are cultivating locally. Some highlights include:
- A policy research piece —one year in the making—resulted from local societies in Africa coming together to engage more deeply around common topics of importance at a regional level, such as emerging markets.
- Additionally, CFA Society Germany and CFA Institute teamed up on the research piece entitled “Stakeholder Capitalism in Action,” which wouldn’t have been possible without the local expert connections the society brought to the project.
- Local societies in India, Brazil, Doha, the UK, France, and Spain continue to team up with CFA Institute on advocating for gender diversity in the investment management profession through the Young Women in Investing program. These initiatives have helped cultivate relationships with employers and constituents in local markets to help support women entering the profession. These programs would not have been possible without the passionate volunteers who contributed their time and effort.
- Nearly 90 societies have been formally promoting the Certificate in ESG Investing—this has helped roughly 13,000 candidates choose to enter the program and learn how to incorporate ESG factors into the investment making process. CFA Society Ireland took their ESG efforts one step further by becoming the first society to become carbon neutral in 2021.
Building a Diverse Portfolio of Learning Products
Efforts to diversify our learning products have centered around creating new courses and certificates—with a total of 13 this fiscal year alone. Members and constituents are able to learn, study, and complete courses and certificates on their own time, and these offerings complement the live and local education opportunities societies provide. Courses developed by CFA Institute include those in relevant and current topics like performance attribution, soft skills development, decentralized finance, and strategic business development. Four of these courses on sought-after data science topics—Natural Language Processing for Investment Professionals, Machine Learning for Investment Professionals, Statistics for Machine Learning for Investment Professionals, and Data and Statistics Foundation for Investment Professionals—launched just last week.
Meanwhile, the Certificate in ESG Investing keeps gaining traction globally, exceeding our goal of 11,500 registrations by 13%. CFA Society UK continues to showcase their product development capabilities and speed-to-market through recently launching the Certificate in Climate and Investing.
Modernizing and Growing the CFA Program
One year ago, we were also still navigating the pandemic’s immediate impacts on the CFA Program—test center closures and exam cancellations. While the effects of the pandemic are still being felt globally, we are relieved that we were able to hold exams across seven administrations in FY22, delivering results to more than 180,000 candidates and naming more than 14,000 individuals as new CFA charterholders. And pass rates are steadily improving toward their long-term averages, an encouraging sign for attracting new participants to the program.
Some societies went the extra mile in supporting candidates by pairing them with mentors from their societies’ membership. Other societies like CFA Society Los Angeles help candidates by hosting free, virtual microlearning events for candidates that focus on specific topics like Ethics and Problem Solving, while CFA Society Singapore launched an in-house Prep Program for Level I and Level II CFA Program candidates.
When it comes to the future of the CFA Program, important plans to “future proof” the program and ensure its continued relevance are progressing as we deepen our understanding of what learners want. Chris Wiese, CFA, MD, Credentialing, will join us for all three regional SLCs to share more about and get society leader input on the approach so far.
EVOLVING HOW WE OPERATE AS A GLOBAL NETWORK
Over the last year, you’ve heard a lot about the Society Operating Model. Our goal through this work is to ensure a more sustainable network for years to come, where we can leverage its strength to deliver maximum impact and value to our members. Becoming a more sustainable network will involve taking advantage of the connectivity of our global network, sharing resources more efficiently, honing our collective focus, and recognizing areas of greatest potential and need, all while reducing the complexity that sometimes hampers our success and the focus of volunteers.
Building out aspects of the Society Operating Model has been a major focus for the society team, PCRs, and leaders of some of our largest societies. This too will be a topic of discussion and input at the SLCs. As part of the work, we began to incorporate a differentiated view of the network through this year’s BPOS process, streamlining reporting and planning, especially for smaller societies. Thank you for your patience and timely reporting in this year’s process.
We communicated necessary shifts to our Funding Model earlier this year that will take place in FY23 and, as you know, are drafting a long-term model in line with the Society Operating Model that more effectively allocates resources across the network. Funding plans for the FY24-26 period will be communicated to all societies by the end of February, if not sooner. We look forward to more conversations about shaping our future together during the upcoming regional SLCs.
PARTNERSHIP EFFECTIVENESS SURVEY OUT NOW
A hearty thank you goes out to the 113 society leaders and staff that have already participated in this year’s Partnership Effectiveness survey! Your direct input into what’s working, where we have opportunities to improve, and what you’d like to see more of during the upcoming regional SLCs has been particularly valuable as we plan for next year.
SHARING OUR PRESENT, SHAPING OUR FUTURE
Registration is open for this year’s regional SLCs, with the theme of Sharing Our Present, Shaping Our Future. Topics will center around this theme, exploring what societies are seeing and hearing in your local markets and the major strategic initiatives CFA Institute has been working on: “future proofing” efforts and course and certificate development. Day 1 will conclude by establishing the context for the second day by involving attendees in helping validate and refine our latest thinking about how our global network is optimized and how to make it more sustainable for the long term. As we think about shaping our collective future on day 2, we’ll have a Q&A with attending Governors of the CFA Institute Board and breakout sessions on many of the topics relevant to societies delivering value in their local markets, among other activities. Our planned agendas account for ample time to reconnect and socialize with one another.
WHAT TO EXPECT IN Q1
In addition to the Society Leadership Conferences in the fall, look for information on the following initiatives in the first quarter:
- Greater partnership between Society Relations, Institutional Relations, and University Relations. We are all part of Global Partnership and Client Solutions and will work closely together to advance our strategy and support societies in capitalizing on opportunities.
- Launch of the Society Leader Community in the Higher Logic online community platform.
- Roll out of updated Society Leader Orientation training and a new Data Privacy training module.
- Socialization of a governance framework for society-led learning product development.
- Important PCR-led governance work designed to better represent the society voice.
GRATITUDE FOR THE NETWORK
I want to end on a note of appreciation for our global society network. It has been another challenging year in the world and for CFA Institute. Despite these difficulties, every day you create value for our members, candidates, and leaders in our profession. Our mission to lead the investment profession globally is as necessary and urgent as ever. We are grateful for your partnership as we get closer to that shared mission. Thank you for all you do.
CREDENTIALING AND CANDIDATE SUPPORT
Important Dates for the CFA Program
Please note the following important deadlines and timelines for the CFA Program.
Release of Level II 2023 Curriculum
With the opening of registration for the May 2023 Level II exam comes the release of the 2023 Level II curriculum! Please revisit our Connexions article and our enterprise site, now updated with new information, to see what innovations we are bringing to the Level II curriculum.
ETHICS AND RESEARCH, ADVOCACY, AND STANDARDS
DEI Code FAQs and Application Live for Volunteers in the UK and Europe
The February 2022 release of the DEI Code in the United States and Canada garnered significant interest from our global society network. Please find our responses to some frequently asked questions we received from the network to help you learn more about this initiative, here on Connexions.
Our External DEI Team is working on creating versions of the DEI Code for the UK and Europe. The regional versions of the Code will provide relevant practical guidance on implementing, tracking, and monitoring the six guiding principles. We are recruiting volunteers to serve on two working groups to support the development of regional codes. Access the application now, or learn more about the opportunity here on Connexions.