WHEN and HOW To Approach the CFA Program's Practical Skills Modules (PSM) as a CFA Candidate

14 Mar 24

Published by Chalk & Board

CFA PSM with Nathan Ronen, CFA

Greetings, future CFA® charterholders! Nathan Ronen, CFA is back with another insightful update, and this time we're diving into the practical skills modules (PSM) for CFA Level I (“Level 1”), CFA Level II (“Level 2”), and the upcoming 2025 CFA Level III (“Level 3”) candidates.

If you're wondering when and how to tackle these PSMs effectively, you're in the right place. Let's unravel the key aspects of these modules and discuss the optimal approach.

Understanding the Practical Skills Modules (PSM)

First things first, the PSMs are an additional layer introduced by the CFA Institute, applicable to CFA Level 1 and CFA Level 2 candidates in 2024 and CFA Level 3 candidates starting in 2025. These modules don't involve exam questions but are crucial for result release.

To be specific, CFA Institute won't release your exam results until you've completed the PSMs. This means you can't afford to skip them if you're eager to know how you performed in the exam.

Timing and Effort Allocation

Now, the big question is when to tackle these practical skills modules and how much time to allocate. According to CFA Institute, each module involves approximately 10 to 15 hours of content. However, let me caution you: don't take these numbers lightly.

My recommendation, based on a deeper dive into the modules, is to budget around 25 hours over a span of two weeks. Yes, you heard it right. The content is not something you can breeze through in 10 to 15 hours unless you're planning to half-heartedly skim through it.

When To Dive Into the Modules

The optimal time to tackle the PSMs is after you've taken your exam but before the results are released. This ensures you don't compromise your exam preparation by allocating crucial study time to the modules. Instead, consider the following schedule:

  1. Take your exam.
  2. Enjoy a week of well-deserved relaxation.
  3. Use the next two weeks to delve into the CFA PSM of your choice.

Considering an eight-hour workday, you might need to invest evenings and weekends to complete the modules within the recommended two weeks.

Choosing the Right Module

For CFA Level 1, you have three PSMs to choose from: Financial Modeling, Python Programming, and Python Data Science and AI. CFA Level 2 candidates have the same options, while CFA Level 3 specifics are yet to be announced. The choice depends on your interests, needs, and career goals.

Final Thoughts

In conclusion, while the CFA practical skills modules might not turn you into an overnight expert, they provide valuable insights and technical skills. Don't view them as a checkbox to tick but rather as an opportunity to enhance your capabilities.

If you're pondering which module to select or have any questions, feel free to reach out. Visit the Chalk & Board YouTube channel for additional resources, and good luck on your CFA journey! Remember, the PSMs are not to be taken lightly, so plan accordingly.

Until next time, study smart and stay dedicated to your CFA goals!

Nathan Ronen, CFA