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Certified Financial Planner (CFP) The gold standard of advisory certifications. Candidates must pass a 10-hour exam covering nearly 90 topics, from group medical insurance to derivatives. The pass rate for the exam is about 53%. There are more than 53,000 CFPs in the U.S. |
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Chartered Life Underwriter (CLU) Insurance professionals who get this must pass eight courses that emphasize insurance topics in areas such as estate planning and taxation. Testing is rigorous. More than 96,000 people have CLUs. |
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Chartered Financial Analyst (CFA) The CFA designation is a staple in the world of investments. Recipients must pass three exams. Each level demands a minimum of 250 hours of study, and coursework includes corporate finance and financial statements. More than 76,000 people hold the CFA and one-third of them manage private wealth. |
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Personal Financial Specialist (PFS)
This credential is open only to certified public accountants (CPAs) and denotes a specialization in personal financial planning. The credential, held by 3,800 CPAs, requires a detailed exam and significant financial planning expertise. It is well-regarded by financial experts. |
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Certified Investment Management Analyst (CIMA) The focus is asset allocation. Because final coursework is typically completed at the Haas School of Business at the University of California, Berkeley, or at the University of Pennsylvania's Wharton School, the credential carries a lot of weight with financial professionals. There are more than 4,800 CIMA designees |
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Chartered Financial Consultant (ChFC)
More than 43,000 people carry the ChFC designation, which focuses on financial planning. To maintain good standing, ChFCs must complete 30 hours of continuing education every two years. |
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Chartered Alternative Investment Analyst (CAIA) Started in 2002, the CAIA designation focuses on alternative investments such as hedge funds, private equity, venture capital, commodities, managed futures, and real estate. Candidates must complete a self-study program and pass two exams. There's no continuing education requirement. About 850 people can call themselves CAIAs. |
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Certified Divorce Financial Analyst (CDFA)
This specialized certification demands expertise in alimony, insurance, asset inventory, and dividing accounts. Most graduates are CFPs, CPAs, or lawyers. Participants must pass four exams and complete 20 hours of continuing education every two years. |
Certifications for Financial Advisers
CFP? CFA? CDFA? A look at what it takes to earn those titles and more
By Lauren Young
Although you won't find consensus on which credentials are the best or the worst, here are some that add more weight to an adviser's business card. You can find detailed explanations on more designations on the NASD Web site.