Candidates must obtain a minimum passing score (MPS) of 70% on the CFA Level I multiple-choice questions, a minimum score of 65 to 70% on the multiple choice questions of the CFA Level II exam, and a minimum passing score (MPS) of 60% on the multiple choice questions of the CFA Level III exam. I passed level 1 without exceeding 65% in a simulation and I have friends who passed level 2 and never exceeded 65% in a simulation. They have recognized that their behavior leads them to obtain a CFA pass (especially if the level becomes a Veblen asset) (the higher the “price”, the greater the demand). Increasing the profile and prestige of the CFA charter should (and is) the objective of the CFA Institute, which generates demand for examination and certification.
We won't get as many data points yet, as level 2 exams take place three times a year, but with future exams we'll see a pattern emerge and see if the CFA Institute is right to say that it's temporary. Therefore, with the numbers as they are, and assuming that the CFA Institute's methodologies on passing rates and the MPS are what they say, this indicates that the average quality of candidates for the CFA exams on May 21 is lower.
