11 Certifications For Financial Advisors (With Importance)

By Indeed Editorial Team

Published 24 September 2022

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

Financial advisors work with both organisations and individual clients, offering suggestions to assist them in reaching their financial objectives. This requires knowledge in a range of financial areas. A financial advisor can develop their abilities and demonstrate their abilities to potential clients and companies by earning a professional certification. In this article, we discuss 11 important certifications for financial advisors with their importance for your reference.

What Are Certifications For Financial Advisors?

Certifications for financial advisors allow these professionals to demonstrate their capabilities in various financial areas. Such certificates can assist financial advisors in enhancing their professional knowledge. They also make them eligible for various kinds of financial roles. Financial advisors assist clients in budgeting and achieving their financial objectives. They also offer guidance on estate planning, retirement planning, investing and saving money for significant expenses like a down payment on a home or college.

Earning a certification help these professionals in developing their expertise to assist their clients with various financial products and planning. Many finance professionals get such certifications to stay competitive.

11 Important Certifications For Financial Advisors

Certifications may help increase your job prospects by demonstrating your experience and abilities. Following are some of the important certifications you may consider:

1. Chartered Financial Analyst (CFA)

The CFA programme is one of the most crucial courses in the financial sector. CFA Institute offers CFA certification. The curriculum provides an in-depth understanding of stock valuation techniques and practical portfolio management abilities by combining theoretical concepts, the latest industry practices and professional and ethical norms. You may apply these concepts and skills at all phases of your career. Because of their extensive knowledge of the financial sector, the CFA degree holder's contributions are crucial to any company's growth and development.

Related: What Are Functions Of Financial Management? (With Purpose)

2. Chartered Wealth Manager (CWM)

The CWM accreditation allows you to consult high net-worth individuals (HNI) and ultra HNI clients on investments, taxes and real estate. These abilities can help you become a highly sought-after specialist in the financial advisory sector. The American Academy of Financial Management (AAFM) India offers this certification. Three or more years of professional experience in wealth management and a degree approved by the AAFM or another approved course, such as a master's degree in particular subjects, are requirements for the CWM programme.

Related: What Is Asset Management? (With Career Options)

3. Certified Financial Planner (CFP)

The Financial Planning Standards Board Ltd. (FPSB) offers the CFP certification programme globally. This credential demonstrates your dedication to professional and ethical financial planning practice. CFP professionals abide by a code of ethics. Which motivates them to provide budgeting and planning advice in the interests of their clients and in accordance with the highest moral and professional standards.

CFPs assist clients with managing their finances in a number of areas, including retirement, education, insurance, investments and taxes. Formal education, CFP exam performance, appropriate job experience and professional ethics are four requirements for receiving the CFP certification.

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4. Chartered Alternative Investment Analyst (CAIA)

The CAIA is a globally recognised credential for professionals analysing, offering, managing or regulating alternative investments. The CAIA Association offers this certification programme. CAIA-certified professionals have extensive knowledge of the financial market and products. This certification can be helpful in getting a position with a company that specialises in alternative investments like fund managers, venture capital, private equity and real estate.

By receiving the CAIA credentials, you become a member of an international network of over 12,000 other CAIA professionals in over 100 different countries. The CAIA charter is very helpful to professionals with a focus on managing and advising alternative investments, such as fund managers, venture capital, private equity and real estate investments.

Related: Learn How To Become An Investor (With Essential Skills)

5. Financial Risk Manager (FRM)

FRM professionals are one of the most well-known and recognised individuals in business. As the FRM course is typically exceedingly challenging, the credibility of those who succeed in it is indisputable. Risk analysts that hold this certification often work in investment banks. They can also help private individuals who may require financial counselling.

Global Association of Risk Professionals (GARP) offers FRM certification for financial advisors. Candidates require passing a two-part multiple-choice exam and demonstrated professional experience to receive the FRM degree.

Related: 10 Types Of Risks In Finance And Tips For Mitigating Impact

6. Chartered Mutual Fund Counsellor (CMFC)

CMFC is one of the most desirable financial advisor qualifications, which has significant industry recognition. It can help enhance your resume as a financial advisor. Professionals who complete the programme successfully and demonstrate a deep understanding of mutual funds receive the CMFC accreditation. The Financial Industry Regulatory Authority (FINRA) offers the CMFC programme. They teach the various aspects of mutual funds and the makeup of various investments in the CMFC curriculum.

At the end of the programme, candidates require passing a challenging exam. Financial advisors who have received the CMFC qualification can use the CMFC title for two years after receiving it. They require renewing their designation by completing 16 continuing education hours each year and affirming their commitment to the code of ethics every two years to continue using it.

Related: Investment Banking Interview Questions And Answers

7. Certified Management Accountant (CMA)

If you work in finance or accounting, you might also consider specialising as a CMA. If you have the training and experience, this certification can help you become a qualified management accountant and have a wide variety of employment opportunities. Its curriculum can help you develop skills in financial accounting and strategic management.

For enterprises and companies, certified management accountants oversee accounting and financial management. Businesses in the accounting or finance sectors employ CMAs. Depending on their sector and employment capacity, CMAs may have varying responsibilities. A CMA's key responsibilities often include preparing financial statements, developing and maintaining firm budgets, supervising the accounting department's workforce, monitoring internal controls and coordinating financial operations.

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8. NISM and CRISIL Certified Wealth Manager (NCCWM)

National Institute of Securities Markets (NISM) and Credit Rating Information Services of India Limited (CRISIL) together offer NCCWM certification. This programme helps you to understand wealth management products and solutions to customise them per the financial objectives of the clients. It enables you to guide clients through the investment process by periodically talking to them about their goals, expected returns and risk tolerance. It also trains you to engage in meaningful interactions, which can help you grow a business. Using CRISIL's analytics, market data database and industry trends can provide you with an in-depth understanding of these topics.

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9. Financial Modelling and Valuation Analyst (FMVA)

Corporate Finance Institute (CFI) offers the FMVA certification to train candidates in practical uses of bookkeeping, spreadsheet, finance, financial modelling, valuation, presentations and other fundamental skills for financial analysts. The programme has 12 mandatory courses, each of which has a validated evaluation at the end and is entirely online. This global certification programme gives the tools and training required to develop into a professional financial analyst and covers the complete skill set of a financial analyst. This is a universally recognised credential that is widely regarded as the standard for experts in financial modelling and valuation.

Related: What Are Financial Modelling Skills? With Examples

10. IRDAI Certified Insurance Advisor

Insurance Regulatory and Development Authority of India (IRDAI) is the body set up by the Government of India (GoI) which oversees and regulates the functioning of various insurance companies in India. To work as an insurance consultant and offer advice on insurance products or sell them to clients requires you to have an IRDAI certification and state licence process, which varies across various states.

To get this certification, you can register on the IRDAI's website and undergo the training, which usually takes two to three days. After that, you require passing an exam. Once qualified, you get your certification and a licence number, which you can verify on the IRDAI website.

Related: Skills For Insurance Agents And How To Improve Them

11. SEBI Investment Adviser (IA)

Any professional who wishes to carry on investment advisory services for their clients in India requires registration as an investment adviser (IA) with the Securities and Exchange Board of India (SEBI) as per SEBI IA regulation 2013. As a SEBI registered IA, you may provide your clients with various kinds of advice on investment products, such as stocks and exchange-traded funds (ETFs).

To register for SEBI IA, you require a postgraduate degree in commerce, finance, accountancy, economics, capital market or related field, CFA Charter certification and professional qualification by completing the Securities Market (Investment Advisory) postgraduate programme by NISM. This certificate of registration stays valid for five years and you require renewing it at least three months before its expiry date.

Please note that none of the companies, institutions or organisations mentioned in this article are associated with Indeed.

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