By Arif Irfanullah, CFA
Level III Exam
Overview of the Computer-based Testing (CBT)
CFA is transitioning to computer-based testing instead of paper-based exams for all levels from 2021. Here is a summary of the major changes for the 2021 exams.
Study Sessions & Weights
There are no changes in Study Sessions’ weights relative to 2020. The CFA Institute gives weights in ranges instead of giving a specified number of questions. For example, Fixed Income has a range of 15 – 20%. This means that Fixed Income questions can be 15%, 20%, or an average of 18% of the total questions. You should expect to see more questions on Fixed Income and Equity compared to earlier years.
| Weight (%) | ||
| Ethical and Professional Standards |
Study Sessions 1&2
|
10-15 |
| Economics | Study Session 4 | 5-10 |
| Fixed Income | Study Sessions 7&8 | 15–20 |
| Equity Investments | Study Sessions 9&10 | 10-15 |
| Derivatives | Study Session 6 | 5–10 |
| Alternative Investments | Study Session 11 | 5–10 |
| Portfolio Management
and Wealth Planning |
Study Sessions 3, 5, 12-16 | 35–40 |
Exam Comparison: Paper-based vs. Computer-based exams
| Paper-based exams | Computer-based exams | |
| Scheduling | One exam day/time offered | Self-schedule your exam within the exam window
(up to a 10-day period). |
| Locations | Proctored exam in 192 locations globally | Proctored exam in 400+ locations globally, including all locations currently offered in June. |
| Exam Length | Two 3-hour sessions with break in between | Approximately two 2.25 hour sessions.
Optional break in between sessions. |
The exam appointment will include:
In 2021, all CFA exams will be computer-based.
Exam Scheduling: In the CBT, you self-schedule your exam within a window that can be up to 10 days. The specific duration will vary from location-to-location. You need to schedule based on the window you have and your commitments/preferences. Testing will be in-person only.
Location: The number of locations has more than doubled. Now the CFA exam will be offered in 400+ locations globally.
Exam-length:
The total exam time includes – 30 minutes for the pledge (candidate’s pledge requiring your signature), a tutorial on how to take the exam, and a survey. Two sessions of 135 minutes each. A 30 minutes optional break in-between the sessions. We highly recommend that you take this break to recharge, take something to eat and drink, then get back to the second session of 135 minutes (2 hours 15 minutes). The total appointment time is thus 5.5 hours, including the testing time of 4.5 hours and two breaks of 30 minutes each. Candidates will have the same average time per question that they had under paper-based testing.
Exam Cycle Options
How often can a candidate take the exam? You will be offered two exam windows instead of just one. You can take the exam in May or November.
When to start studying? This depends on what you know already, the time you have until the exam, and your learning ability. Generally, for an average candidate, a good time to start studying is November for the May exam and May for the November exam. This allows you sufficient time to learn the different concepts of the Level III curriculum. This study schedule is for a candidate who has a basic knowledge of the concepts learned at earlier levels. If that is not the case, more preparation time is needed based on each candidate’s understanding ability.
| Exam Date | When to start studying |
| May | November |
| August | February |
| November | May |
Time Between Exams
Beginning in 2021, every candidate who does not pass his/her exam will have to wait a minimum of six months to retake it. Candidates will not be able to register for adjacent windows. For example, if a Level II candidate passes the exam during the August 2021 administration, he will not be able to sit for Level III until the May 2022 administration.
The following diagram given by the CFA Institute shows the path that can be taken to receive your charter.
If you gave the Level II exam in December 2020 and passed the exam, you can sit for the Level III exam in May 2021. If you gave the LIII exam in December 2020 and could not pass, the next exam option is May 2021. Along with passing the Level III exam, you also have to complete the 4 years of the requisite work experience to earn your CFA charter. Notice the time taken to receive your charter is much shorter than what it was before.
CBT Exam Format
Level III will use the same item set and essay format that has been used in the past.
You will have Item sets with four multiple-choice questions (MCQs) per set and/or six MCQs per vignette. The mixed length of four and six-question item sets will continue for 2021, and the total number of item sets on the exam may vary slightly.
Regarding calculations in the essay exam, you are not required to show your work. A correct numerical value will receive full credit. If you would like to show the steps, it is possible to use the equation editor that is part of the exam software. This allows you to build a formula as part of a response. You can also write the steps used in a calculation. If you choose to show your workings, it will be evaluated as part of the response and can earn partial credit in cases where the answer is not entirely correct.
What you Get from the CFA Institute to Study and Prepare
When you sign-up for the Level III exam, you get:
IFT Material comprises of over 80 hours of video, including detailed lectures and High-Yield lectures. IFT Study Notes, Practice Questions, and Mock Exams will get you exam ready.
For finding out about the IFT material, Watch this video!
Best of luck in your studies!
Sign up to get more!