Top 10 Financial Advisor Certifications

Certifications are important for financial advisors because they demonstrate a level of expertise and knowledge in the field. Holding certifications can also help to increase confidence in clients, as they know that their advisor has the qualifications and experience required to provide sound advice. Certifications also make it easier for financial advisors to stay up-to-date on industry trends, regulations, and best practices. In a competitive job market, having these credentials helps financial advisors stand out from other candidates and gives them an edge when applying for new positions.

This article reviews some of the top certifications for Financial Advisors and explains how they can help to advance a financial advisor's career.

What are Financial Advisor Certifications?

Financial advisor certification is a formal process that certifies an individual as qualified to provide financial advice and services. It is offered by a variety of organizations, including the Certified Financial Planner Board of Standards (CFP), Chartered Financial Analyst Institute (CFA) and the Financial Planning Association (FPA). Certification requires individuals to meet certain standards of education, experience and competency in order to be recognized as a professional financial advisor.

The benefits of becoming certified are numerous. It provides clients with assurance that they are working with someone who has met certain qualifications and can be trusted to provide sound financial advice. Additionally, it helps advisors demonstrate their knowledge and expertise in the field, which can lead to increased business opportunities. Certified advisors may also have access to special resources and training opportunities that help them stay up-to-date on the latest industry developments. Finally, certification may also provide financial advisors with additional credibility when working with potential clients or employers.

Pro Tip: Make sure to research the financial advisor certification requirements for your state before committing to a program. Different states may have different criteria for obtaining a certification, so it's important to be aware of the specific requirements in your area.

Related: What does a Financial Advisor do?

Top 10 Financial Advisor Certifications

Here’s our list of the best certifications available to Financial Advisors today.

1. Certified Financial Planner (CFP)

Certified Financial Planner (CFP) is a professional certification for financial planners. It is the most widely recognized and respected designation in the financial planning industry. The CFP certification requires that individuals meet certain educational, experience, and ethical standards set by the Certified Financial Planner Board of Standards (CFP Board).

To become a CFP, an individual must complete a minimum of three years of full-time work experience in the financial services industry and pass a comprehensive exam. The exam covers topics such as investments, retirement planning, insurance, estate planning, taxation, and financial planning process. After passing the exam and meeting other requirements, individuals can apply to become certified by the CFP Board.

It typically takes at least two years to prepare for the CFP exam. This includes taking courses related to financial planning and studying for the exam itself. The cost of becoming a CFP varies depending on which courses are taken and how much time is spent preparing for the exam. Generally speaking, it can cost anywhere from $2,000 to $4,000 or more to obtain a CFP certification.

2. Chartered Financial Analyst (CFA)

Chartered Financial Analyst (CFA) is a professional designation given by the CFA Institute, formerly known as the Association for Investment Management and Research (AIMR). The CFA credential is considered to be one of the most prestigious credentials in the financial industry. It is awarded to individuals who have demonstrated a mastery of advanced investment analysis and portfolio management skills through a rigorous series of exams.

It typically takes four years to complete all three levels of the CFA program. Each level requires approximately 300 hours of study time, with Level I being the most basic and Level III being the most advanced. To become a CFA charterholder, candidates must pass all three levels of exams within four years and meet certain work experience requirements.

To get started, you must first register with CFA Institute and pay an enrollment fee which varies depending on when you register. After that, you can purchase study materials from CFA Institute or from third-party providers such as Kaplan Schweser or Wiley. You will then need to dedicate yourself to studying for each exam over a period of several months.

The cost for enrolling in the CFA Program varies depending on when you register; however, it typically ranges from $1,000 - $2,500 USD per level plus additional fees for study materials and exam registration.

3. Certified Investment Management Analyst (CIMA)

Certified Investment Management Analyst (CIMA) is a professional certification offered by the Investment and Wealth Institute (formerly known as the Investment Management Consultants Association). It is designed to provide financial advisors with the knowledge and skills necessary to develop, implement, and monitor investment strategies for their clients. The CIMA certification is recognized worldwide as a symbol of excellence in wealth management.

The CIMA program consists of three parts: an online course, an examination, and a work experience requirement. The online course covers topics such as portfolio management, asset allocation, risk management, and investment analysis. The exam consists of two parts: a multiple-choice section and a case study section.

In order to become certified, candidates must pass both parts of the exam with a score of 70% or higher. Candidates must also have at least three years of relevant work experience in the field of investment management.

The cost for the CIMA program varies depending on whether you are taking it through self-study or through a participating institution. Self-study costs range from $1,000-$2,500 USD while participating institutions may charge anywhere from $2,000-$5,000 USD.

The time it takes to complete the CIMA program depends on how quickly you can complete the online course and pass both parts of the exam. Generally speaking, it will take between six months to one year to complete all requirements for certification.

4. Chartered Financial Consultant (ChFC)

Chartered Financial Consultant (ChFC) is a professional designation awarded by The American College of Financial Services. It is designed for financial professionals who provide comprehensive financial planning advice to individuals, families, and business owners.

To become a ChFC, an individual must complete nine college-level courses in topics such as estate planning, risk management, investments and retirement planning. The courses are offered online or in person at The American College of Financial Services. To receive the ChFC designation, individuals must also pass a comprehensive exam and meet the ethical standards set forth by The American College of Financial Services.

The entire process to obtain the ChFC designation typically takes about one year to complete. However, this timeline can vary depending on the individual’s prior knowledge and experience level with financial planning topics.

The cost to obtain the ChFC designation varies depending on the method used to take the courses (online or in person). Generally speaking, it costs approximately $3,000-$4,000 for tuition fees and exam fees associated with obtaining the ChFC designation.

5. Chartered Retirement Planning Counselor (CRPC)

Chartered Retirement Planning Counselor (CRPC) is a professional designation awarded by the College for Financial Planning to financial advisors who have demonstrated expertise in retirement planning. It requires the completion of an intensive course of study, including a comprehensive exam, and is designed to help advisors develop a thorough understanding of retirement planning strategies.

To obtain the CRPC designation, applicants must first meet certain prerequisites, such as having at least three years of experience in the financial services industry and having completed at least 30 hours of continuing education courses related to retirement planning. Once these criteria have been met, applicants must complete a self-study program that consists of four courses: Retirement Plan Investment Strategies; Retirement Plan Distribution Strategies; Taxation and Qualified Plans; and Social Security Benefits Planning. After completing the self-study program, applicants must pass a comprehensive exam administered by the College for Financial Planning.

The cost to obtain the CRPC designation varies depending on how you choose to pursue it. The self-study program can be purchased from the College for Financial Planning for $1,695 or from other providers for around $1,000. The exam fee is $295 and must be paid directly to the College for Financial Planning when you register for it.

In total, it takes approximately eight months to complete all requirements necessary to earn the CRPC designation.

6. Accredited Investment Fiduciary (AIF)

Accredited Investment Fiduciary (AIF) is a professional designation that certifies an individual has met certain standards of knowledge, experience, and ability in the area of investment fiduciary responsibility. The AIF designation is granted by the Center for Fiduciary Studies (CFS), which is part of the Foundation for Fiduciary Studies.

It typically takes between four to six months to complete the AIF program. To become an AIF, individuals must first complete a self-study course, pass an exam, and submit a signed application form with supporting documentation. The self-study course covers topics such as fiduciary duties and responsibilities, investment strategies, risk management, and compliance. After successfully completing the course and passing the exam, applicants must submit their application along with supporting documents such as references from employers or clients verifying their experience in investment fiduciary responsibility.

The cost of obtaining an AIF designation depends on how quickly you want to complete it. The total cost can range from $1,500 to $2,500 depending on whether you choose to take a self-study course or enroll in an instructor-led program.

7. Certified Fund Specialist (CFS)

Certified Fund Specialist (CFS) is a professional designation that demonstrates an individual’s knowledge and expertise in the field of mutual funds. The CFS designation is awarded by the Institute of Business & Finance (IBF), a non-profit organization dedicated to providing financial professionals with education and training.

The CFS program consists of three levels: Level 1, Level 2, and Level 3. To earn the CFS designation, candidates must successfully complete all three levels. Each level requires passing an exam as well as completing coursework in areas such as investments, portfolio management strategies, retirement planning, financial analysis, and risk management.

The total time required to complete all three levels of the CFS program varies depending on the individual's background and experience. Generally speaking, it takes between six months to one year to complete all three levels.

In order to get certified as a CFS, individuals must first register with IBF and pay the applicable fees. The registration fee for each level is $150 USD plus any additional fees associated with taking exams or purchasing study materials.

Once registered, individuals can begin studying for their exams at their own pace. IBF offers several resources to help prepare for the exams including online courses, practice exams, study guides, webinars, and more. After passing each exam level successfully, individuals will receive their official Certified Fund Specialist certificate from IBF.

Overall cost for obtaining a Certified Fund Specialist designation depends on how quickly you are able to complete each level of the program and if you need to purchase any additional study materials or take extra courses outside of what IBF provides for free. In general though you should expect to spend around $600 USD in total fees associated with taking the exams and registering with IBF.

8. Chartered Life Underwriter (CLU)

Chartered Life Underwriter (CLU) is a professional designation granted by The American College of Financial Services. This designation is designed to provide financial advisors with the knowledge and skills they need to help clients make sound decisions about their insurance and financial planning needs.

To become a Chartered Life Underwriter, an individual must complete a series of courses, pass an exam, and meet other requirements. The coursework required for the CLU designation covers topics such as life insurance, health insurance, disability income insurance, retirement planning, investments, estate planning, taxation, business planning and more.

The length of time it takes to obtain the CLU designation will vary depending on each individual's experience level and how quickly they can complete the necessary coursework. Generally speaking, it can take anywhere from six months to two years to earn the CLU designation.

In order to get your CLU designation you must first apply for admission into The American College of Financial Services’ Chartered Life Underwriter program. After being accepted into the program you will need to complete all of the required courses within a specified timeframe in order to be eligible for graduation from the program. You will also need to pass an exam administered by The American College of Financial Services in order to receive your CLU designation.

The cost of obtaining your CLU designation will vary depending on which courses you choose and how quickly you are able to complete them. Generally speaking, it can cost anywhere from $2,000 - $5,000 USD in tuition fees alone in order to obtain your CLU designation.

9. Certified Retirement Counselor (CRC)

Certified Retirement Counselor (CRC) is a professional credential that demonstrates expertise in retirement planning. It is awarded by the College for Financial Planning, a division of Kaplan University. The CRC credential focuses on helping individuals and families make informed decisions about their retirement savings and investments.

To become a Certified Retirement Counselor, you must complete an approved course of study and pass an exam administered by the College for Financial Planning. The course of study includes topics such as retirement planning strategies, Social Security, pensions, taxation, investments, insurance and estate planning.

The program typically takes between three to six months to complete depending on your level of commitment and experience. To enroll in the program you must have either a bachelor's degree or at least three years of related work experience in financial services or counseling.

The cost to obtain the CRC designation varies depending on the program you choose. Generally speaking, it can range from $1,500 to $3,000 USD including tuition fees and exam fees.

10. Certified Estate and Trust Specialist (CES)

Certified Estate and Trust Specialist (CES) is a professional designation awarded by the American College of Financial Services. It is designed to recognize individuals who have demonstrated mastery of the complex rules, regulations, and laws governing estate planning and trust administration.

To obtain the CES designation, applicants must complete a three-part program that includes passing an exam, completing coursework, and meeting experience requirements. The program can be completed in as little as six months or up to two years depending on the individual’s prior knowledge and experience.

The cost of obtaining the CES designation ranges from $1,500-$2,000 depending on the program chosen. This cost includes tuition fees for the courses as well as registration fees for the exam.

In order to get certified as a CES, candidates must first meet certain eligibility requirements including having at least three years of full-time experience in estate planning or trust administration within the last five years; or having earned a degree in law or finance; or having completed at least 30 hours of continuing education related to estate planning or trust administration within the last five years. Once these requirements are met, applicants can register for their chosen program and begin studying for their exam.

Do You Really Need a Financial Advisor Certificate?

Yes, a financial advisor certificate can be beneficial for those who are looking to work in the field of finance. A financial advisor certificate can demonstrate that an individual has the knowledge and skills necessary to provide sound financial advice to their clients. The certificate also shows that the individual is committed to staying up-to-date on the latest developments in the world of finance, including changes in laws, regulations, and economic trends.

Having a financial advisor certificate can help individuals secure employment with banks, investment firms, or other organizations that offer financial services. In addition, having a certification may open up doors for additional opportunities such as consulting services or teaching positions. An individual with a financial advisor certificate may also be able to command higher salaries due to their specialized knowledge.

The process of obtaining a financial advisor certificate includes taking courses related to finance and passing examinations related to topics such as economics, investments, taxes, insurance, estate planning and real estate law. This type of certification demonstrates that an individual is knowledgeable about all aspects of personal finance and can provide sound advice to their clients. Furthermore, an individual with this type of certification will be able to identify potential risks and make appropriate recommendations to their clients based on their current situation and goals.

In conclusion, obtaining a financial advisor certificate can be beneficial for anyone interested in working in the field of finance. It demonstrates that an individual has the necessary knowledge and skills needed to provide sound advice for their clients’ finances. Additionally, having a certification could lead to more job opportunities with higher salaries than those without one.

Related: Financial Advisor Resume Examples

FAQs About Financial Advisor Certifications

1. What types of certifications are available for financial advisors?

Answer: Financial advisors can obtain a variety of professional designations and certifications, such as Certified Financial Planner (CFP), Chartered Financial Analyst (CFA), Chartered Investment Counselor (CIC), and Chartered Retirement Planning Counselor (CRPC).

2. How long does it take to become certified as a financial advisor?

Answer: The amount of time required to become certified depends on the type of certification chosen. Generally, it takes one to two years of preparation and study to obtain most certifications.

3. What is the cost of obtaining a financial advisor certification?

Answer: The cost of obtaining a professional designation or certification varies depending on the program chosen, but can range from several hundred dollars to several thousand dollars.

4. Do I need to be employed by a certain company in order to receive a financial advisor certification?

Answer: No, you do not need to be employed by any specific company in order to receive a financial advisor certification. However, some programs may require that you have experience working in the field prior to enrolling in their program.

5. Are there continuing education requirements for maintaining my financial advisor certification?

Answer: Yes, most professional designations and certifications require ongoing continuing education credits in order for you to maintain your credential.