Close Close
ThinkAdvisor
Bowl of alphabet soup showing advisor designations CFP, AIF, RICP

Practice Management > Building Your Business

12 Financial Advisor Designations That Can Boost Your Career

By Ed McCarthy

X
Your article was successfully shared with the contacts you provided.

Earning a professional designation can provide multiple benefits for your career as a financial advisor. A well-designed educational program will increase your knowledge, which can help you serve clients more effectively. Having a professional designation can also boost your credibility with clients and prospects, which in turn can assist with business development.

There is a veritable alphabet soup of financial services designations available. Some state securities and insurance regulators do not allow financial professionals to use a designation — in particular a “senior” designation — unless it has been accredited by either the ANSI National Accreditation Board (ANAB) (a subsidiary of the American National Standards Institute) or the National Commission for Certifying Agencies (NCCA).

Here’s a list of accredited designations and several others that are widely recognized:

Designations Accredited by ANAB

Accredited Investment Fiduciary (AIF)

Governing organization: Center for Fiduciary Studies

Purpose: Provide investment professionals with fiduciary knowledge and tools

Prerequisites: Candidate must meet a point-based threshold based on a combination of education, relevant industry experience and/or professional development.

Study formats: Online, virtual or blended

Cost: Online: $1,595; Blended and virtual: $1,950

Continuing education requirement: 6 hours per year

Number of designees: 11,000+

Certified Investment Management Analyst (CIMA)

Governing organization: Investments & Wealth Institute

Purpose: Certified Investment Management Analyst® (CIMA®) is a professional certification for financial advisors and investment consultants in advanced portfolio construction.

Prerequisites: Candidate must have three years of financial services experience and a satisfactory record of ethical conduct, as determined by Investments & Wealth Institute Admissions Committee.

Study formats: Online self-paced, or weekly virtual sessions lasting approx. 3.5 months

Cost: $4,500 online, or $4,950 weekly virtual sessions

Continuing education requirement: 40 hours every two years

Number of designees: 8,500+

Certified Senior Advisor (CSA)

Governing organization: Society of Certified Senior Advisors (Also accredited by the NCCA)

Purpose: Certified Senior Advisors (CSAs) apply multidisciplinary knowledge of the aging process and aging issues to identify the most appropriate options and solutions for seniors’ individual needs and best interests to improve their lives.

Prerequisites: Candidate information profile; disclosure questionnaire; comprehensive background check; submit signed CSA application for certification; agree to abide by and uphold the CSA Code of Professional Responsibility

Study formats: Online, live virtual or in-person options. Exam-only option available.

Cost: Exam-only option: $395; course materials: $400. Online plus exam: $1,190; in-person or virtual class plus exam: $1,290

Continuing education requirement: 30 CSA CE credits every three years

Number of designees: 2,800

Certified Private Wealth Advisor (CPWA)

Governing organization: Investments & Wealth Institute

Purpose: CPWA certification is an advanced professional certification for advisors who serve high-net-worth clients.

Prerequisites: Bachelor’s degree from an accredited college or university or one of the following designations or licenses: CIMA, CIMC, CFA, CFP, ChFC or CPA license; a satisfactory record of ethical conduct, as determined by IMCA’s Admissions Committee; and five years of professional client-centered experience in financial services or a related industry

Study formats: 100% virtual, or 90% virtual/10% in-person

Cost: $7,295, either option

Continuing education requirement: 40 hours every two years

Number of designees: 1,400+

Designations Accredited by NCCA

Accredited Financial Counselor (AFC)

Governing organization: Association for Financial Counseling and Planning Education

Purpose: Provide the knowledge and experience to help individuals and families build a strong financial foundation, realize their goals and achieve lasting financial well-being.

Prerequisites: 1,000 hours of financial counseling experience and submit three letters of reference attesting to professional competence and experience

Study formats: Self-paced study; financial education challenge; professional designation challenge; university program; distance learning program

Cost: Self-paced study ($1,455 – $2,130); financial education challenge ($830 – $1,855); professional designation challenge ($,1130 – $1,805); university program ($780); distance learning program ($780)

Continuing education requirement: 30 hours every two years

Number of designees: 3,000+

Certified Financial Planner (CFP)

Governing organization: Certified Financial Planner Board of Standards Inc.

Purpose: CFP professionals meet rigorous education, training and ethical standards, and are committed to serving their clients’ best interests today to prepare them for a more secure tomorrow.

Prerequisites: A bachelor’s degree (or higher) from an accredited college or university, and three years of full-time personal financial planning experience or the equivalent part-time experience (2,000 hours equals one year full-time)

Study formats: Self-paced; virtual; blended

Cost: Tuition varies with education provider. Exam rates: Standard registration rate is $925. An early bird rate of $825 is available until six weeks before the registration deadline, and a late registration rate of $1,025 applies during the final two weeks of registration

Continuing education requirement: 30 hours every two years, including two hours of ethics

Number of designees: Approximately 95,000

Certified Retirement Counselor (CRC)

Governing organization: International Foundation for Retirement Education (InFRE)

Purpose: Demonstrate understanding of retirement planning and income distribution principles to help clients and retirement plan participants make informed retirement decisions.

Prerequisites: Bachelor’s degree or equivalent with two years relevant professional experience (within the past five years) or high school diploma or equivalent with five years relevant professional experience (within the past seven years); background check

Study format: Self-study

Cost: Optional five-part study guide: $520 ($135 each if purchased separately); Optional five-part study guide plus exam fee: $970; Exam fee: $550; $250 for retakes

Continuing education requirement: 15 hours per year, including at least two hours of ethics every two years

Number of designees: Approximately 2,000

Life and Annuity Certified Professional (LACP)

Governing organization: National Association of Insurance and Financial Advisors Certification Commission

Purpose: Process through which qualified insurance and financial professionals may apply for and receive certification.

Prerequisites: Candidate must be licensed as a life insurance agent in the jurisdiction(s) of practice and have: three years of full-time experience as an active life insurance agent; bachelor’s or higher degree or industry designation or two years of additional experience, for a total of five years experience as an active life insurance agent

Study format: Self-paced, web-based

Cost: Exam prep course: $350; study guide: $40. Application and examination fees are $500 for NAIFA members, $700 for Non-NAIFA Members, and $500 for non-U.S. candidates.

Continuing education requirement: 30 hours over a three-year period

Number of designees: Unavailable

Master Registered Financial Consultant (MRFC)

Governing organization: International Association of Registered Financial Consultants (IARFC)

Purpose: The Master Registered Financial Consultant (MRFC) accredited credential represents a commitment to serving the consumer as a highly knowledgeable and ethical practitioner.

Prerequisites: Self-assertion and documentation of a minimum of four years of full-time experience as a financial planning practitioner; satisfy licensing and registration requirements; attest to a sound record of business integrity and code of professional conduct and business integrity

Study format: Self-study

Cost: Nonrefundable application fee: $100; examination fee: $600; recertification fee of $600 per year

Continuing education requirement: 40 hours every year, including two units related to ethics

Number of designees: Unavailable

Other Designations

Several other designations do not have ANAB or NCCA accreditation but have nonetheless achieved widespread recognition:

Chartered Financial Consultant (ChFC)

Governing organization: The American College of Financial Services

Purpose: The ChFC program covers a must-have list of requirements for financial advisors, from knowledge on tax and retirement planning to special needs advising, wealth management, insurance and more.

Prerequisites: There are no prerequisite courses required before you can begin the ChFC program, but three years full-time, relevant business experience and a high school diploma or the equivalent are required to use the designation.

Study format: Online

Cost: $5,670 (may vary based on course/package choices)

Continuing education requirement: 30 hours every two years, including one hour of ethics

Number of designees: 40,000+

Chartered Life Underwriter (CLU)

Governing organization: The American College of Financial Services

Purpose: A CLU certification gives advisors:

  • In-depth knowledge of the life insurance industry underwriting process and life insurance law within the guidelines of overall risk assessment
  • The necessary knowledge to help clients and investors address their estate planning needs
  • An understanding of personal finance solutions addressing the life insurance underwriting needs of business owners and professionals

Prerequisites: There are no prerequisite courses required to begin the CLU program, but three years of experience in financial planning or a related profession are required to use the designation.

Study format: Self-study

Cost: Fees range up to $3,500 for a five-course package; tuition covers all CLU course fees following the traditional self-study model, are all-inclusive, covering all required study materials, access to online learning tools, examination and shipping fees

Continuing education requirement: 30 hours every two years, including one hour of ethics

Number of designees: 94,000+

Retirement Income Certified Professional (RICP)

Governing organization: The American College of Financial Services

Purpose: The Retirement Income Certified Professional (RICP) program empowers financial professionals with the knowledge they need to become experts in today’s fast-growing retirement planning market.

Prerequisites: There are no prerequisite courses required before beginning the RICP program other than a high school diploma or the equivalent, but three years of experience in financial planning or a related profession are required to use the designation.

Study format: Online self-study

Cost: $950 per class, or purchase a three-course package for $2,450

Continuing education requirement: 30 hours every two years, including one hour of ethics

Number of designees: Unavailable

(Image: David Palmer/ALM)

Ed McCarthy is a freelance financial writer who holds the certified financial planner and retirement income certified professional designations.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.