CFA Level 1: Computer-Based Testing From 2021, Explained

6/2/2020

By Zee Tan

Back in March 2019, CFA Institute made a big announcement whereby CFA Level 1 exams will transition to computer-based testing (CBT) in 2021, starting in February. This move was done to keep up with the latest credentialing practices whilst enhancing overall candidate experience (more test venues, flexible scheduling and faster results delivery).

We now have more details about the upcoming computer-based Level 1 exams, summarized for you post our discussion with CFA Institute themselves, along with detailed FAQs which we recommend you look through.

P.S. - Yes, there are changes in exam format and exam frequency, amongst other things.

CFA Level 1 changes 2020 vs 2021 computer based testing

2021 CFA Level 1 Computer-Based Testing: Quick Summary of Changes

Value	Dec 2020 Level 1 Exam (Last paper-based exam)	Feb 2021 Level 1 Exam (First computer-based exam)
Exam Day / Frequency	1 exam day / time offered Current paper-based Level 1 exams in 2020 offered twice a year in June and December	An exam window (of up to 7 days) that you can choose New computer-based Level 1 exams starting Feb 2021 are offered 4 times a year in February, May, August and November.
Exam Format	240 multiple choice questions, split into 2 equal sessions: Morning: 120 questions in 3 hours; Afternoon: 120 questions in 3 hours.	180 multiple choice questions, split into 2 equal sessions: Morning: 90 questions in 2 hours 15 minutes; Afternoon: 90 questions in 2 hours 15 minutes.
Locations	Proctored exam in 87 locations globally	Proctored exam in 400+ locations globally
If passed, when is the earliest I can take Level 2?	If passed Level 1 Dec 2020 exam, you can register for Level 2 June 2021 exam.	If passed Level 1 Feb 2021 exam, you can register for Level 2 June 2022 exam (6 months minimum between exams).
If failed, when is the earliest I can retake Level 1?	If failed Level 1 Dec 2020 exam, the earliest you can retake is May 2021.	If failed Level 1 Feb 2021 exam, the earliest you can retake is August 2021 (6 months minimum between exams).
Exam results availability	Within 60 days of taking the exam	Results are not instantaneous, but would be faster than paper-based format (i.e. less than 60 days)

Frequently Asked Questions (FAQ) About CFA Computer-Based Testing

Does this mean that the last paper-based CFA Level 1 exam would be December 2020?
Will the exam format change for computer-based Level 1?
Will Level 1 candidates have more test dates, and be able to reattempt more often than the current 6-month exam cycle?
I'm new to the CFA exams: should I take CFA Level 1 in Dec 2020 or 2021?
Where are the new test locations for computer-based CFA Level 1 exams?
How will the exam vary across different exam dates? Will it be a separate exam for every available date, or a randomly generated mix of questions every time (i.e. like a question bank)?
Will results be instant? If not, when could candidates now expect to receive their results?
How will the Minimum Passing Score (MPS) be determined now that the exam cycles are changing?
Would the value of the CFA Charter be diluted as a result of increased test candidates via computer-based testing?
Will the exam fee be lowered/changed to reflect the new logistics (and costs) of administering the exam?
Are there any plans to move Levels 2 and 3 to computer testing? Or to increase test frequency for those 2 levels?

1) Does this mean that the last paper-based CFA Level 1 exam would be December 2020?

Yes, that’s correct.

The first computer-based Level 1 exam will be administered in February 2021. Although the exams will be digital, they are not online. Exams will be offered in proctored test centers globally.

2) Will the exam format change for computer-based Level 1?

The new Level 1 exams starting in Feb 2021 will have 180 questions (vs. the current 240 questions), with a proportional reduction in exam time. CFA Institute's rationale for this is that their independent research has showed that a shorter exam would not affect their ability to reliably determine who has demonstrated the required competency to pass the exam.

This means that there will be 90 questions each for Morning and Afternoon exam sessions, with each session lasting 2 hour 15 minutes (135 minutes).

Each exam appointment will last 5.5 hours, consisting of:

30 minutes allotted to pledge, tutorial, and survey
135 minutes for Morning (AM) session
30 minutes for mandatory break
135 minutes for Afternoon (PM) session
Total testing time is 4.5 hours

3) Will Level 1 candidates have more test dates, and be able to reattempt more often than the current 6-month exam cycle?

The first computer-based CFA Level 1 exam will be held in February 2021. CFA Level 1 computer-based testing (CBT) will be offered globally in 4 windows each year (February, May, August, and November). Each exam window lasts up to 7 days, depending on city

CBT allows flexible windows of test taking, and therefore CFA Institute can offer candidates a greater selection of test dates. During exam windows, candidates will take exams on different days and all exams will be completed at the end of an exam cycle rather than on one exam day.

That said, Level 1 CBT candidates can only take the exams twice a year at most (minimum 6 months wait) – the same timeframe as current candidates must wait. Candidates who pass Feb 2021 Level 1 CBT exam will have to wait until registration opens for the next available Level 2 exam, which is also a minimum of 6 months. Candidates will move through the program at the same pace as they can currently.

4) I'm new to the CFA exams: should I take CFA Level 1 in Dec 2020 or 2021?

We can't advise on this as it depends on your personal circumstances and preferences.

That said, which one you choose does affect the speed of completing the CFA Program (if you pass Level 1 at first try):

The December 2020 exam is the last paper-based exam for Level 1 candidates and would allow time to register for Level 2 in June 2021, assuming a Level 1 pass.
The first computer-based exam will be in February 2021. If you pass however, you can only take the Level 2 exam in June 2022, as there is a minimum 6 months wait per exam.

5) Where are the new test locations for computer-based CFA Level 1 exams?

CFA Institute will provide a list of test center locations in June 2020 when registration for the February 2021 Level I CFA Program CBT window opens.

It is expected that it can be held in more locations around the world than currently offered by paper-based exams.

6) How will the exam vary across different exam dates? Will it be a separate exam for every available date, or a randomly generated mix of questions every time (i.e. like a question bank)?

CFA Institute stated its commitment to maintain the integrity of the CFA Program, including protecting exam content.

On all testing dates, candidates will continue to share a common testing experience. Building an item bank is central to that endeavor and creates a level playing field for all candidates whether they test at the beginning or end of a testing window.

CFA Institute mentioned that it cannot share the specifics of the exam construction techniques without compromising the security of the exam, but questions will be generated according to psychometrically sound principles that provides a consistent standard across candidates and across time.

8) How will the Minimum Passing Score (MPS) be determined now that the exam cycles are changing?

Candidates will not receive their final results instantly, but can expect to receive results more quickly than is possible under the current examination format. CFA Institute expects to provide a more reasonable expectation after the first few CBT administrations.

7) Will results be instant? If not, when could candidates now expect to receive their results?

Currently, the CFA Institute Board of Governors determines the minimum passing score for each exam administration based on guidance from approximately 30 CFA charterholders who review each exam question-by-question in a process, known as standard setting. This process is described in detail in The CFA Program: Where Theory Meets Practice.

Under computer-based testing, CFA Institute will continue standard setting on a periodic basis while using statistical techniques to assure a consistent difficulty level across exam windows.

In short, following each exam window, CFA institute will determine the Minimum Passing Score based on performance, which will remain unchanged. This means that candidates who completed the exam in CBT will be held to the same standard as those who completed a paper-based exam.

9) Would the value of the CFA Charter be diluted as a result of increased test candidates via computer-based testing?

CFA Institute stated that it would not make changes that risk diluting the value of the charter. They do not expect necessarily to serve more candidates, but to make the exams a more convenient process for them.

Although the Level 1 exam is offered 4 times a year, candidates will only be allowed to test twice per year. This is intentional and is also a natural result of the timeline for when results are released vs. when registration is open for the next exam. For example, a candidate failing Level 1 Feb 2021 exam can register for a Level 1 retake from August onwards, but not May.

10) Will the exam fee be lowered/changed to reflect the new logistics (and costs) of administering the exam?

Computer-based testing is a more expensive exam delivery model for an organization operating on the scale of CFA Institute. That said, it is expected that there would not be significant changes to examination fees as a result of computer-based testing.

11) Are there any plans to move Levels 2 and 3 to computer testing? Or to increase test frequency for those 2 levels?

At this time, CFA Institute is only focused on delivering computer-based testing for Level 1. There are no current plans to transition CFA Level 2 and 3 to computer-based testing, nor does CFA Institute expect to change the testing frequency while still administering these exams under paper-based testing.

Have a question that's not covered? Let us know in the comments and we'll try to get a response from CFA Institute!

15 Comments

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Andy link

13/3/2019 02:25:42 pm

It looks like Level I can be taken 4 times per year now? PUKE. If that's true, then make it 4 times harder. Part of the CFA prestige is how "F****ked" you are if you fail during a cycle. CFAI risks diluting the program to make extra registration $$s.

Christine Martinez link

14/3/2019 08:49:34 am

Understand your frustration. However I think more opportunities to take the exam should overall be a good thing. It would make it more inclusive timing-wise, as well as open it up to candidates in remoter areas who would otherwise have to travel to central places (affecting participation rates).

Andy

14/3/2019 02:52:02 pm

Thanks for your response Christine. I welcome better access for candidates in remote areas. But part of the CFA exams being so hard are cramming hundreds of people in one room. The stress around you. Bathroom breaks. Logistics. That's all real life stuff. Driving at your leisure to take a "Series 7-like" test center multiple times per year is not the CFA that I signed up for.

It's not fair to the candidates who worked their asses off to pass to specifically avoid waiting a long time to retake.

It's not fair to the candidates who worked their asses off to fail and had to wait forever to retake.

Kris

18/2/2020 04:54:01 am

Note the answer to Q9 above: "Although the Level 1 exam is offered 4 times a year, candidates will only be allowed to test twice per year. This is intentional and is also a natural result of the timeline for when results are released vs. when registration is open for the next exam. For example, a candidate failing Level 1 Feb 2021 exam can register for a Level 1 retake from August onwards, but not May."

Hence, the frequency at which a candidate can take the exam is the same as it currently is (twice a year).

Christine

18/2/2020 09:59:12 am

Yep, 2 attempts a year, but more flexible because there are 4 possible timeslots.

David

4/6/2019 09:48:41 am

FYI the CPA is administered this way and it’s not easy. I think so long as L2 and L3 are given once a year the old fashioned way nothing much changes. If they get to the point of offering L2 and L3 computer based don’t be surprised if they still keep them once per year. Fewer candidates take those exams Prometric can handle 1 week of testing for them...

Christine Martinez link

5/6/2019 08:56:41 am

You're bang on point there David. I think part of the issue is the volume of L1 candidates, hence it makes sense to use computer testing. As the number of candidates decreases up the levels (and with the essay format) it is unlikely that we'll see L3 being computer tested anytime soon.

Aditya Agarwal

13/3/2020 05:52:50 pm

When will the registration for Feb 2021 open?

Christine Martinez

13/3/2020 07:56:18 pm

Hi Aditya, while CFA Institute has not released any official dates yet, based on past exam timelines, we expect them to open registration for Feb 2021 around late April or beginning May.

Fardeen Akhtar

11/6/2020 06:43:49 am

If i give exam on Aug2021 exam, will i be able to register for early bird for L2 2022

Christine

11/6/2020 11:17:49 am

Hi Fardeen,
Although no official dates have been published yet so far into 2022, it is likely that you would be able qualify for early bird L2 2022 assuming a pass in Aug 2021 Level 1 paper. Let me explain my assumptions:

1) CFA Institute has mentioned that CBT papers should be graded faster than the usual 2-2.5 months of paper-based exam, although they don't know exactly how much faster until a few CBT exam cycles have occured.

2) So even assuming that it is 2-2.5 months, that still is before Dec 2021 anyway that you get your Aug 2021 Level 1 exam results.

3) Assuming the same time trends as June 2021's exam, Level 2 June 2022's registration opens end July/early Aug 2022, and ends on mid Feb 2022 (where Standard Registration begins).

So since you'll know your result by Dec 2021, you should be able to register for early bird prices for L2 2022 June assuming a pass.

Hope that helps!

Fardeen Akhtar

11/6/2020 11:56:05 am

Wasn't able to reply, so asking separately.

Thank you for your reply, but i am still confused. In point no.3 you have told that June 2021 early bird registration ends at mid Feb, but i have checked CFA website, there it is said that early bird registration ends at 23 September,2020. Please can you clear this point.

Christine

11/6/2020 01:07:13 pm

Hey Fardeen
Good catch on my error! I did miss out the one line that Early Registration ends on 23 Sep 2020.

If that's the case, we don't exactly know the answer as it really depends on when the Aug Level 1 CBT is held (earlier in the month or later - something CFA Institute has confirmed to us they have not released info on yet), and how long it'll take to grade/publish the exam results for CBT exams (again CFA Institute cannot confirm this at this stage).

E.g. if exams are held early August, there MAY be a chance that CFA Institute can/will publish the result just before 23 Sep 2020 deadline. That said, if they follow an exact 3 months cycle (quarterly exams), it may be held towards end of August (since Feb 2021's exam window is last week of Feb), of which there is a slimmer chance they will release results in 3 weeks to make 23 Sep 2020.

Sorry it isn't much help and lots of theorizing at this stage - the best we can infer with the current facts/info we all have. Hope this helps nonetheless!

Amit soni

19/6/2020 07:23:24 am

there was any changes in cfa exam fees as the format has changed ?

Christine

19/6/2020 01:56:21 pm

Hi Amit, there is no changes of exam fees for Feb 2021's Level 1 CBT exam. That said, if you need to reschedule your initially chosen exam date, this will incur an additional USD 250 fee. Other than that, registration fees still costs $700-1000 (no late registration fees anymore), with a first time enrollment fee of $450.

CFA Level 1: Computer-Based Testing From 2021, Explained

2021 CFA Level 1 Computer-Based Testing: Quick Summary of Changes

Frequently Asked Questions (FAQ) About CFA Computer-Based Testing

1) ​Does this mean that the last paper-based CFA Level 1 exam would be December 2020?

2) Will the exam format change for computer-based Level 1?

3) Will Level 1 candidates have more test dates, and be able to reattempt more often than the current 6-month exam cycle?

4) I'm new to the CFA exams: should I take CFA Level 1 in Dec 2020 or 2021?

5) Where are the new test locations for computer-based CFA Level 1 exams?

6) ​How will the exam vary across different exam dates? Will it be a separate exam for every available date, or a randomly generated mix of questions every time (i.e. like a question bank)?

8) How will the Minimum Passing Score (MPS) be determined now that the exam cycles are changing?

7) ​Will results be instant? If not, when could candidates now expect to receive their results?

9) Would the value of the CFA Charter be diluted as a result of increased test candidates via computer-based testing?

10) ​Will the exam fee be lowered/changed to reflect the new logistics (and costs) of administering the exam?

11) ​Are there any plans to move Levels 2 and 3 to computer testing? Or to increase test frequency for those 2 levels?

Leave a Reply.

1) Does this mean that the last paper-based CFA Level 1 exam would be December 2020?

6) How will the exam vary across different exam dates? Will it be a separate exam for every available date, or a randomly generated mix of questions every time (i.e. like a question bank)?

7) Will results be instant? If not, when could candidates now expect to receive their results?

10) Will the exam fee be lowered/changed to reflect the new logistics (and costs) of administering the exam?

11) Are there any plans to move Levels 2 and 3 to computer testing? Or to increase test frequency for those 2 levels?