There are many professional designations in the investment industry. Now you can figure out what the acronyms mean that you often see on business cards and professional biographies. Here are some of the more common designations in the investment industry:
Accredited Asset Management Specialist (AAMS)
This designation is awarded by the College for Financial Planning and persons obtaining this title must complete a self study course and pass an examination on asset management topics.
Certified Financial Planner (CFP)
The CFP designation is not easy to obtain. Professionals with a CFP designation willl have broad knowledge of all aspects of financial planning. The CFP must undergo years of testing and continuing education.
Certified Fund Specialist (CFS)
This designation is offered by the Institute of Business and Finance (IBF) to financial services professionals who successfully complete its course and pass the comprehensive exam. This designation focuses on mutual funds.
Certified Investment Management Analyst (CIMA)
This certification requires coursework and a final exam and is administered by the Investment Management Consultants Association plus 3 years experience in the investment consulting field.
Certified Investment Specialist (CIS)
CIMAs that go one step further obtain the CIS designation. It requires advanced concepts and strategies in asset analysis, tax planning and legal issues pertaining to investment consultants.
Certified Public Accountant (CPA)
Becoming a CPA is no easy task. Besides obtaining an accounting degree, CPAs must meet a 150 semester hour credit requirement, pass a four part exam, and complete at least one year of relevant experience (requirements vary by state) CPAs can offer financial services, but their specialty is tax issues.
Personal Financial Specialist (PFS)
CPAs that want to focus more on financial planning obtain a PFS designation. They must have at least 250 hours of yearly experience in financial planning and have passed an additional exam.
Chartered Financial Analyst (CFA)
This designation is one of the toughest to obtain. The CFA has passed three examinations and accumulated three years of professional work experience. This is a common designation for mutual fund managers, money managers and stock analysts.
Chartered Investment Counselor (CIC)
Professionals with a CIC designation must obtain a CFA designation first, be employed by a member of the ICAA (Investment Counsel Association of America), and must have 5 cumulative years of related work experience.
Chartered Financial Consultant (ChFC)
Similar to CFPs, the Chartered Financial Consultant must complete multiple years worth of examinations and has knowledge in all areas including tax, estate, insurance, financial planning and portfolio management. ChFCs tend to come from the insurance industry.
Chartered Life Underwriter (CLU)
Professionals with a CLU designation have completed a ten course curriculum covering life insurance products.
Chartered Mutual Fund Counselor (CMFC)
To obtain this designation you must complete a self-study program and final examination on different mutual fund topics. Professionals with this designation provide mutual fund advice to clients.
Chartered Retirement Planning Counselor (CRPC)
This designation is usually obtained by financial advisors that want to increase their knowledge of pre and post retirement financial planning.
Chartered Retirement Plans Specialist (CRPS)
This designation is usually obtained by financial advisors that want to increase their technical skills in administering retirement plans for business clients.
Registered Investment Advisor (RIA)
These professionals generally charge a flat fee and/or an ongoing asset-based fee for their investment management services and are registered with the SEC (unless they have less than $25 million under management, then they register with their state). The SEC does not formally recognize "RIA" as an official title because they don't want to imply that advisors faced a certification process.
