Financial Advisor Certifications
The following are a number of certifications or designations which a financial advisor might have in Canada, and a brief summary of each. This list does not encompass all certifications available to financial advisors in Canada.
Certified Financial Planner (CFP)
A CFP is one of the stronger and designations for financial advisors. A number of CFPs come from legal, tax and investment backgrounds, and the certification allows CFPs to provide advice on various investment arrangements, taxes, estates, insurance and retirement planning. To become a CFP requires some rigorous coursework and examinations, and so any advisor with a CFP designation will have considerable knowledge in respect of financial advice.
Personal Financial Planner (PFP)
The designation is often sought out by advisors in the banking sector. PFP professionals often have a strong background in a number of financial planning avenues, like insurance, real estate management, and business income management. PFPs generally provide advice on a one-to-one basis with a client and provide personalized financial plans.
Registered Financial Planner (RFP)
An RFP designation is meant to symbolize the highest level of competency and professionalism in the field of financial planning in Canada. An RFP needs to already have experience in financial planning, and then must engage in a process of peer reviewed work by other certified financial planners. An RFP designated professional implies a high standard of expertise and should make for excellent financial advising capabilities.
Chartered Life Underwriter (CLU)
Life insurance agents will often seek out the CLU certification. To achieve the CLU certification, a potential candidate will need to complete course work covering a number of fields including insurance planning, life insurance law, individual life insurance, fundamentals of estate planning and planning for business owners.
Chartered Investment Manager (CIM)
CIM designated advisors often come from portfolio management backgrounds, and the CIM designation provides training to determine the best investments for clients, managing large-scale portfolio-wide wealth and investments and understanding macro economic and market conditions. CIMs may continue to work for large banks and wealth advisors and their wealthy clients.
Chartered Financial Analyst (CFA)
A CFA designation is one of the hardest to achieve and is considered a global gold star standard for understanding financial instruments and investments. CFAs are well regarded for their ability to analyze just about any kind of investment, and work in a number of industries involving investment class assets. A financial advisor with a CFA designation is considered to have an extremely deep understanding of the inner financial workings of just about any investment, and is well respected across the financial advisor industry.
Responsible Investment Specialist (RIS)
Those certified as Responsible Investment Specialists focus their investment advice on environmental, social and governance (ESG) investments. ESG investments are a classification of investments that continue to grow in popularity as they focus on investments that promote certain key components not motivated solely by profit. Those with RIS designations must complete bi-annual continuing education hours to maintain their understanding of the strategies involved in providing ESG investment advice.
Certified Investment Wealth Manager (CIWM)
A certified international wealth manager is a globally recognized designation and a global standard for strategic wealth management in various asset classes and jurisdictions around the world. In order to qualify to become a CIWM, candidates are required to already be a CFA, CFP, PFP or CIM, so a CIWM is well educated and has a trove of experience in order to provide such advice. Those certified as CIWMs specialize in developing strategies and relationships with high net worth individuals, so advice provided or received from a CIWM will be of the highest standard.
