12 Financial Advisor Designations That Can Boost Your Career

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.