Why isn't CE mandatory after you become a CFA charterholder?
The CFA states on its website that “the CFA Program curriculum covers concepts and skills you will use at all stages of your career, connecting academic theory with current practice…”, yet there is no requirement for CFA charterholders to keep up with current practice. The CFA Program is updated annually to reflect changes in the current marketplace, but only CFA candidates are actively participating in the CFA Program. CFAI only recommends and does not mandate that charterholders keep up-to-date on new developments. As a CPA, I think the most crucial component of what keeps the CPA designation relevant and valuable is the Continuing Professional Education (CPE) necessary to renew your license, about a week per year of training on new developments in the audit, tax, and regulatory environments. I brought up this disconnect on another thread and I am wondering why current charterholders wouldn’t push to have a continuing education (CE) requirement that would serve many goals: keep the individual charterholder up-to-date on current developments in finance (it’s easier to do when it’s required rather than voluntary), differentiate charterholders that keep up-to-date on developments rather than those that stop after obtaining the charter (as those charterholders that don’t complete CE would go into a deactive status), and add value to the CFA charter overall (as it would be a given that a CFA charterholder is up-to-date on current practice; all you can assume of a CFA charterholder at the moment is that they passed the exam and had the requisite work experience at some point in the past). To be frank, I don’t know if the fact that you passed the CFA Program 20 years ago would carry much water if you hadn’t kept up with the marketplace after achieving the charter.
I would love to hear from current charterholders if this has been discussed by CFAI in the past, and their arguments for and against such an initiative. From my understanding, the CFAI had supported (and maybe even implemented) required CE for charterholders in the past, but that is no longer the case. Why did this happen?
Study together. Pass together.
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