Practical Skills Modules (PSMs) for CFA® Candidates
Margaret
1 day 9 hours 36 min
- What's CFA Exam Practical Skills Module?
- Can You Skip Your CFA Exam Practical Skills Module?
- How Much Time for a Practical Skills Module?
- Is There Python in Level 1 CFA Exam?
- Key Takeaways for CFA Program PSMs
What's CFA Exam Practical Skills Module?
CFA exam Practical Skills Module (PSM) is an additional CFA exam learning module aimed at developing your practical skills based on some extra study materials. It is not part of the testing but must be completed before receiving your CFA exam results.
Different CFA PSM modules are available at different exam levels and they include financial modeling, analyst skills, or Python programming.
| CFA Exam Level | Available PSMs |
| Level 1 | (1) Financial Modeling, (2) Python Programming Fundamentals |
| Level 2 | (1) Analyst Skills, (2) Python, Data Science & AI, (3) Python Programming Fundamentals |
| Level 3 | (1) Analyst Skills, (2) Financial Modeling, (3) Portfolio Development & Construction, (4) Python, Data Science & AI, (5) Python Programming Fundamentals |
CFA Institute introduced PSMs back in 2023 in response to employers who need their future employees to be more practical.
A PSM module consists of interactive content, including videos, multiple-choice questions, case studies, and guided exercises. Candidates must complete at least one PSM per level, though they can complete more if they want.
Can You Skip Your CFA Exam Practical Skills Module?
PSM is a requirement at each CFA exam level and cannot be skipped. If you fail to complete your practical skills module before exam results are released, your results will be withheld.
To make sure you do your PSM right:
- You may begin your PSM module at any time after registration.
- You should complete your PSM module before your CFA exam results are released.
- If you do not finish your PSM by the time results are released, an additional 90 days will be granted to complete it.
- Failure to complete your PSM within this period will void the exam result, requiring you to re-register and retake the CFA exam.
Note that PSMs are meant to bridge the gap between theoretical knowledge and practical skills required in the financial industry.
How Much Time for a Practical Skills Module?
10-20 hrs is the time needed to complete a PSM for each CFA exam level. The time commitment varies based on the candidate's pace and familiarity with the topic.
You should plan out your CFA exam prep efficiently, including the PSM time allocation. Remember that:
- each PSM takes 10-20 hours,
- the module you choose can be completed anytime after registration,
- you can complete more than one PSM or you can switch between PSMs meanwhile - the bottom line is that you MUST complete at least one of them,
- you must finalize your PSM before results are released,
- some PSMs may take longer if additional practice is needed.
Planning is crucial here. Once again, if you delay your PSM until after the CFA exam, ensure you have sufficient time to complete it before results are available.
Is There Python in Level 1 CFA Exam?
The focus of level 1 CFA exam PSMs is on foundational skills rather than advanced data science concepts. The following are included:
- Python Programming Fundamentals: Covers basic coding principles, syntax, and financial applications.
- Financial Modeling: Introduces candidates to spreadsheet-based financial analysis and modeling.
So, it's just the fundamentals of Python, no Data Science or AI is included in the level 1 CFA exam yet. More advanced topics like Data Science and AI are introduced at higher levels.
Key Takeaways for CFA Program PSMs
CFA Program PSM modules are essential for all CFA candidates and play a significant role in practical skill development.
- You must complete your PSM for the release of your CFA exam results.
- Available topics include financial modeling, Python programming, analyst skills, and portfolio construction.
- One PSM module takes 10-20 hours to complete.
- Level 1 focuses on fundamentals, while level 2 and level 3 offer advanced topics.
- Your exam results will be voided if you fail to complete a PSM within the required timeframe.
Remember that by completing your PSMs, you gain valuable skills that align with industry needs, which makes you more competitive in the job market. See all CFA exam windows and decide when to register for your exam. Good luck :)
About Soleadea:
Our CFA Exam Study Planner is available to candidates of all levels at groundbreaking Pay-What-You-Can prices. You decide how much you want to pay for our services. After you activate your account, you get unlimited access to our Study Planner 4.0 with study lessons inside, various level 1/level 2 study materials & tools, regular review sessions, and a holistic growth approach to your preparation. Join
Read Also:
