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Financial adviser
titles
By Daniel
Jimenez • Bankrate.com
Anybody can call himself a financial adviser. Telling
the experts from the phonies is a matter of studying their credentials.
Each of the titles attached to a name requires a different level
of experience and education, so take that into consideration when
choosing a professional. Some of the most common designations are:
Registered Investment Adviser
All financial planners/investment advisers are
required to be registered with the Securities
and Exchange Commission. The SEC does not use the acronym "RIA"
to avoid the implication that mere registration equals financial
expertise.
Certified Financial Planner (CFP) or Chartered
Financial Consultant (ChFC)
A professional with a CFP or ChFC designation
should have a broad knowledge of all aspects of financial planning.
Subject areas studied include securities, estate planning, insurance
and taxes. Both designations mean the person has passed rigorous
examinations and met certain requirements. The Institute
of Certified Financial Planners in Denver certifies the CFP.
The ChFC designation is earned through The
American College in Bryn Mawr, Pa., and they tend to come out
of the insurance industry.
Certified Life Underwriter
(CLU)
An adviser with a CLU designation has undergone expanded study in
insurance planning. Those studies are also offered by The
American College, so many of the planners with a ChFC will also
hold a CLU.
Certified Public Accountant/
Personal Financial Specialist (CPA/PFS)
An individual with a CPA title will have a more extensive background
in tax issues. However, a PFS designation is awarded by the American
Institute of Certified Public Accountants in New York City to CPAs
who have taken additional training or already hold a CFP or ChFC
designation.
Certified Fund Specialist
(CFS)
A CFS focuses on the mutual fund industry. Training
is received through the Institute
of Business & Finance. Formerly known as the Institute of
Certified Fund Specialists, this organization is located in La Jolla,
Calif.
Chartered Financial Analyst
(CFA)
CFAs are more likely to work for mutual fund companies, institutional
asset management organizations or pension funds. Classes for this
program are run by the Association
of Investment Management and Research in Charlottesville, Va.
Chartered Investment Counselor
(CIC)
To receive the CIC designation, an individual must already be a
CFA. The program focuses on portfolio management and is offered
through the Investment
Counsel Association of America in New York City.
Certified Investment Management
Analyst (CIMA)
An investment consultant must already have three years of professional
experience before being eligible to obtain this certification. The
Investment
Management Consultants Association in Denver teaches the CIMA
courses.
-- Updated: Jan. 13, 2003
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