12 Financial Advisor Designations That Can Boost Your Career
Having any of these widely recognized professional designations will boost your credibility with clients and prospects.
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.