CFA Level 3 Curriculum Changes 2022

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Each year, CFA Institute makes some changes to the exam curriculum. There are some updates throughout the CFA Level 3 curriculum 2022. Well, on this page, we are going to inform you of CFA Level 3 Curriculum changes 2022.

CFA Level 3 Curriculum Changes 2022

In short, there is a smaller revamp on the CFA Level 3 curriculum 2022.

Here are some notable changes of the CFA Level 3 curriculum 2022:

  • Fixed Income readings in CFA Level 3 curriculum 2022 were revised across all levels to set for ease of reading and consistency. For example, elimination of duplication, notation simplification and alignment, and updating of concepts such as LIBOR to Market Reference Rates, as well as a revision for reading the challenging Yield Curve Strategies and Credit Strategies at Level 3 for relevance and clarity.
  • There are some revisions to Private Wealth Management, Institutional Investors, and Performance Evaluation reflecting the new 2020 GIPS standards.

Apparently, there are 35 readings in the CFA Level 3 curriculum 2022 (vs. 38 in 2020/2021):

5 readings from 2020/2021 were deleted/removed:

  • Reading 4: Professionalism in Investment Management
  • Reading 7: The Behavioral Finance Perspective
  • Reading 29: Taxes and Private Wealth Management in a Global Context
  • Reading 30: Estate Planning in a Global Context
  • Reading 31: Concentrated Single-Asset Positions

2 new readings were added in the CFA Level 3 curriculum 2022:

  • Reading 22: Topics in Private Wealth Management
  • Reading 30: Case Study in Risk Management: Institutional

7 readings in the CFA Level 3 curriculum 2022 were updated, mostly major content revisions in Fixed Income and further update of GIPS.

Overall, the CFA Level 3 curriculum 2022 has notable content changes in Fixed Income, Portfolio Management and Ethics. Other topics remain the same as last year’s.

The CFA Level 3 curriculum 2022 received major updates, but topic weight in 2022 did not change from 2021. Here we are going to break down the major CFA curriculum changes for Level 3 of the CFA Exam.

  • Ethical and Professional Standards

The Ethical and Professional Standards topic in the CFA Level 3 curriculum 2022 moved to the end of the curriculum. Reading Professionalism in Investment Management dropped from the CFA curriculum 2022. Then, a new case on Sovereign Investment Corp added to the reading Application of the Code and Standards: Level 3. As part of ethics, the GIPS reading is revised with the following items taken out: private equity, wrap fees, real estate, and separately managed accounts.

  • Behavioral Finance

In the Behavioral Finance topic, the reading “The Behavioral Finance Perspective” was dropped from the CFA curriculum 2022.

  • Fixed Income

Reading Fixed Income topics have several changes with new Learning Outcome Statements added, other LOS removed, and revisions to the readings. Substantial changes are in the last two fixed income readings; Yield Curve Strategies and Fixed-Income Active Management: Credit Strategies.

  • Private Wealth Management

In the Private Wealth Management topic, new reading Topics in Private Wealth Management replaced three readings which were dropped; Taxes in Private Wealth Management in a Global Context, Estate Planning in a Global Context, and Concentrated Single Asset Positions.

  • Portfolio Management and Risk Management

There is a new reading Integrated Cases in Risk Management: Institutional, which is a case study which was added to the Study Session Cases in the Portfolio Management and Risk Management topic.

CFA Level 3 Topic Weights 2022

Just like CFA Level 1 and 2, there are no changes to CFA level 3 topic weights 2022 compared to CFA level 3 topic weights 2021. It is as expected given historical trends of reducing the variability in topic weight across the ten topics, with a maximum range difference of 5 percent per topic.

CFA Level 3 Topic Weights (Changes vs. Previous Year)

Topics / Weight 2018 2019 2020 2021 2022
Quant Methods
Economics 5-10% 5-10% 5-10% 5-10% 5-10%
FRA
Corp Fin / Issuers
Equity 5-15% 10-15% 10-15% 10-15% 10-15%
Fixed Income 10-20% 15-20% 15-20% 15-20% 15-20%
Derivatives 5-15% 5-10% 5-10% 5-10% 5-10%
Alt. Investments 5-15% 5-10% 5-10% 5-10% 5-10%
Portfolio Mgmt. 40-55% 35-40% 35-40% 35-40% 35-40%
Ethics 10-15% 10-15% 10-15% 10-15% 10-15%

CFA Level 3 Topic Weights 2021

There are no changes in CFA Level 3 topic weights 2021. In 2018-2019, there was a major change whereby Portfolio Management’s weighting is significantly reduced, and in favor of an increased emphasis on Equity and Fixed Income. Overall, the CFA Level 3 update reduced the variability in topic weight across the ten topics with a maximum range difference of 5 percent per topic.

CFA Level 3 Curriculum Changes 2021

In the text above, we explain about CFA Level 3 Curriculum Changes 2022. Now, you may also want to know information about CFA Level 3 Curriculum Changes 2021.

Apparently, there are 38 readings in CFA Level 3 Curriculum 2021.

12 readings from 2019 were deleted/removed:

  • Reading 5: Overview of the Asset Management Industry & Portfolio Management
  • Reading 10: Managing Individual Investor Portfolios
  • Reading 15: Managing Institutional Investor Portfolios
  • Reading 16: Capital Market Expectations
  • Reading 17: Equity Market Valuation
  • Reading 30: Alternative Investments Portfolio Management
  • Reading 31: Risk Management
  • Reading 32: Risk Management Applications of Forward and Futures Strategies
  • Reading 33: Risk Management Applications of Option Strategies
  • Reading 34: Risk Management Applications of Swap Strategies
  • Reading 35: Execution of Portfolio Decisions
  • Reading 36: Evaluating Portfolio Performance

13 new readings were added in the CFA Level 3 Curriculum 2021:

  • Reading 10: Capital Market Expectations, Part 1: Framework and Macro Considerations
  • Reading 11: Capital Market Expectations, Part 2: Forecasting Asset Class Returns
  • Reading 15: Option Strategies
  • Reading 16: Swaps, Forwards, and Futures Strategies
  • Reading 26: Hedge Fund Strategies
  • Reading 27: Asset Allocation to Alternative Investments
  • Reading 28: Overview of Private Wealth Management
  • Reading 33: Portfolio Management for Institutional Investors
  • Reading 34: Trade Strategy and Execution
  • Reading 35: Portfolio Performance Evaluation
  • Reading 36: Investment Manager Selection
  • Reading 37: Case Study in Portfolio Management: Institutional
  • Reading 38: Case Study in Risk Management: Private Wealth

5 readings in CFA Level 3 Curriculum 2021 were updated, mostly major content revisions in the Portfolio Management section.

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