CIA-IV outline - The Certified Internal Auditor Part 4 Updated: 2023

What are Financial Certifications?

The Best Finance Certifications to Look for in a Financial Advisor

1. Certified Financial Planner (CFP®)

Why Use a CFP®? 

2. Certified Public Accountant (CPA)

Why Use a CPA? 

3. Chartered Financial Analyst (CFA)

Why Use a CFA? 

4. Chartered Financial Consultant (ChFC)

Why Use a ChFC? 

5. Chartered Life Underwriter (CLU)

Why Use a CLU?

6. Chartered Investment Counselor (CIC)

Why Use a CIC? 

7. Certified Private Wealth Advisor (CPWA)

Why Use a CPWA? 

8. Certified Estate Planner (CEP)

Why Use a CEP? 

9. Certified Personal Finance Counselor (CPFC)

Why Use a CPFC? 

10. Financial Risk Manager (FRM)

Why Use a FRM? 

11.  Retirement Manager Advisor (RMA) 

Why Use a RMA? 

12. Certified Retirement Counselor (CRC)

Why Use a CRC? 

Why Should Financial Advisors Have Finance Certifications?

Who Regulates Finance Certifications?

Best Financial Advisors

Bonus Courses

1. Financial Management: A Complete Study for CA/CMA/CS/CFA/ACCA by Udemy 

2. The Complete Financial Analyst Course 2023 by Udemy 

3. exam Prep: CFA® Level 1 Bootcamp 2023 Curriculum (Part 1/2) by Udemy

4. exam Prep: CFA® Level 1 Bootcamp 2023 Curriculum (Part 2/2) by Udemy

5. Financial Risk Manager (FRM) Certification: Level I by Udemy 

Frequently Asked Questions

Domains

The CFMP advisory board has determined that a competent bank marketing professional's expertise includes the following domains:

• Data, Research, and Measurement
• Strategy
• Revenue Generation
• Communication and Brand
• Risk Management 

Please review the CFMP Examination Outline and Informational Webinar for additional details.

Study Resources

While ABA recommends these resources as appropriate examination preparation, ABA does not ensure that you will pass the exam by studying these materials alone. The CFMP exam assesses not only your knowledge of the courses on the exam outline, but also your application of that knowledge. You should refer frequently to the CFMP Examination Outline when preparing for the exam.

IMPORTANT NOTICE: The only legitimate resource for ABA’s certifications, including reference materials, are available on www.aba.com. Any other resources or guides related to ABA’s certification programs offered for sale on third party platforms such as Amazon and eBay is not authorized by the ABA and such purchases are at the buyer’s risk. While it is not illegal for publishers to write separate resources to potential customers, it can be difficult to determine the legitimacy of offers from these organizations, especially if they contain unauthorized uses of ABA’s federally protected logo. If you do not make your purchase with ABA directly, we will not be able to assist you in any capacity. Please contact ABA Customer Service at 1-800-BANKERS to be directed to a legitimate resource.

Exam Format, Scoring and Reporting

• 150 multiple-choice questions (see sample questions)
• Maximum 3 hour timeframe allowed
• Calculators will be provided
• Instant "Pass/Fail" outcome provided for most computer based exams at test sites. Occasionally, instant outcomes are not provided while statistical analysis is conducted.
• Official score reports delivered via email within 6 weeks after the close of the exam window
• For full details, read the Certification exam FAQs

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“An Outline of Financial Economics” presents a systematic treatment of the theory and methodology of finance and economics. The book follows an analytical and geometric methodology, explaining technical terms and mathematical operations in clear, non-technical language, and providing intuitive explanations of the mathematical results. The text begins with a discussion of financial instruments, which form the basis of finance theory, and goes on to analyze bonds – which are regarded as fixed income securities – in a simple framework, and to discuss the valuation of stocks and cash flows in detail. Highly relevant courses such as attitudes toward risk, uncertainty, the financial structure of a firm, stochastic dominance, portfolio management, option pricing and conditions for non-arbitrage are analyzed explicitly. Because of its wide coverage and analytical, articulate and authoritative presentation, “An Outline of Financial Economics” will be an indispensable book for finance researchers and undergraduate and graduate students in fields such as economics, finance, econometrics, statistics and mathematics.

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Naunidh Hunjan has been getting up at the crack of dawn to meditate his worries away for the past 20 years.

For the past five years, Mr. Hunjan, president of Hunjan Financial Group Inc. in Mississauga, has been inviting clients to join him, remotely over a videoconference call. After several sessions, he says, they report being able to manage stressful situations better and less likely to worry about their finances during the workday.

Every day, the average Canadian employee spends 33 minutes thinking about their finances while at work. A recent survey by the National Payroll Institute (NPI) equates this to $45-billion in lost productivity a year.

To mitigate these losses, Mr. Hunjan often counsels clients who are employers to offer yoga and meditation in workplaces and to beef up their mental health benefits.

According to the NPI survey, one in five workers needs to use a sick day to cope with rising levels of money-related stress. But with more than a third of financially stressed survey participants earning more than $100,000 annually, the survey also found higher income isn’t necessarily a determining factor in improving working Canadians’ financial wellness.

“Most employers understand the value of investing in preventive maintenance to keep equipment running well and reduce the risk of breakdowns, which can be very expensive,” he says. “Workplace mental health is no different, but here the goal is to not just prevent emotional breakdowns, but also support employees and promote healthy habits so they flourish.”

He points out that making sound financial decisions is more challenging when mental health is tested.

“You might be more prone to impulse purchases, not paying bills on time or not putting aside enough money to build up your savings or emergency fund,” he says. “These actions only worsen the financial stresses we are all experiencing.”

Approaches to working with employees

In keeping with these findings, advisors who work with employers and their employees are increasingly broadening their focus beyond meeting immediate financial needs to a more holistic, long-term approach.

“While in the past our staff seminars were more of a practical nature, delving into [registered retirement savings plans, tax-free savings accounts], taxes and insurance. Today’s discussions are about something much more basic and important,” says Naoshad Pochkhanawala, chartered life underwriter and financial planner at Amiko Benefits Inc. in Markham, Ont. “Nowadays, we’re having each employee determine and write down their personal financial philosophy.”

This one- to two-page framework is intended to outline how and why they make financial decisions, identify sources of assistance and establish a realistic starting point.

“If people don’t have the tools to answer these questions, especially in these times, it results in anxiety,” he says.

Current economic challenges coupled with rising inflation and food prices have led to a significant increase in financial anxiety in the workplace, says Jeremi Lapierre, certified financial planner (CFP) and founder of Fit Financial in Ottawa.

To help mitigate that, he advocates for employers to provide direct support for employees’ daily expenses where possible.

“For example, I’ve worked with an employer in the electrical industry who alleviated financial stress by distributing $250 grocery gift cards to each employee,” Mr. Lapierre says.

“I’ve seen other employers actively prioritize their employees’ financial well-being by offering flexible work hours, which can significantly reduce child care expenses for working parents.”

These initiatives represent a growing trend among employers who not only recognize financial stress but also take proactive steps to alleviate it within the framework of comprehensive financial planning, he says.

“This proactive stance is crucial in helping businesses effectively manage economic downturns and stay ahead of financial challenges, preventing employees from feeling the financial squeeze,” Mr. Lapierre says.

Women face more financial stress

Lin Sok, financial advisor and founder of Lin Sok Services Financiers Inc. in Montreal, says she’s seeing disproportionately more women who are worried about their finances at work.

“Women’s salaries tend to be lower. We also occupy some of the lowest-paying essential fields such as nursing, administration, and education,” Ms. Sok says.

“While we have traditionally made career choices for many reasons other than money, the rising cost of absolutely everything is leading women to question their salaries and current work conditions increasingly.”

Ms. Sok will often refer clients to recruitment specialists to search for better-paying career opportunities, thereby lessening their financial stress.

“Earning more doesn’t solve everything but in many cases, it helps,” she says. “The jobs are there, we just need the confidence to go after them.”

Educating employees and seeking assistance

With more mortgage foreclosures attributed to disability, one of the greatest risks to employees remains an accident or sickness that interrupts their cash flow.

“We ask all our employers to provide 24-hour income protection or disability insurance, either paid for as part of a group benefits package or as a voluntary benefit where it doesn’t cost the employer anything and premiums are simply deducted from employee’s pay cheques,” Mr. Pochkhanawala says.

“But along with this, education on the basics is key. One of the ways employers express their concern for employees is simply by informing them that we are available to come in and answer basic financial planning questions.”

Statistics consistently show Canadians who seek assistance from a financial planner are less prone to money-related stress, according to the 2023 Financial Stress Index, published by FP Canada. It’s one of the facts Kelly Ho will cite whenever clients ask her to deliver a seminar to their employees.

Ms. Ho, partner and CFP at DLD Financial Group Ltd. in Vancouver, says she steers away from talking about products and focuses on goal-setting instead.

“The pitfall of our industry is that we use a lot of jargon, so people feel it is unapproachable,” she says.

“We keep our talks on financial literacy light-hearted, and stress the importance of having a plan and finding someone they trust to share it with, so at least they know where they stand.”

Ms. Ho has noted an increase in employees claiming mental health services as part of their group benefits packages.

“Employers have significant incentives to do what they can to help, but it’s hard to find good people, and counsellors cost a lot of money,” she says.

“When I sit down with employers to go over how they’re doing, I’ll often point out, ‘The reason your business is thriving is because your employees are getting help when they realize they need it.’”

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Every borrower wants to believe their homeownership journey will be smooth sailing, without financial hardships or missed mortgage payments. But as the last few years have taught us, unforeseen events like COVID-19, natural disasters, inflation and low affordable inventory make mortgage relief awareness critical.

Because homeowners weren’t thinking about unexpected events or hardships when they bought their home, they likely don’t consider relief options when they’re faced with a delinquency. They may think it’s impossible to get current with their payments or worry that they’re in danger of foreclosure.

A more connected housing ecosystem of lenders, servicers, real estate agents, housing counselors and other professionals working together can provide continuous education and proactive intervention to help overcome these challenges.

Early and ongoing education helps homeowners prepare for the unexpected.

Homeowners who are anxious about making payments or lack understanding of the mortgage process often ignore correspondence from their servicer for fear that it’s bad news — when it could just be a simple notice for a change of servicer.

For those borrowers who do have late or missing payments, early engagement is crucial. The longer the loan is delinquent, the less likely they’ll be able to take advantage of loss mitigation solutions, according to Donna Spencer, vice-president of servicer relationship and performance management at Freddie Mac Single-Family. “Ongoing homeowner education must be the new standard,” she said.

Currently, borrower education happens mainly with the servicer. However, opportunities exist for more collaboration with Freddie Mac and Fannie Mae and with mortgage professionals for an integrated approach that better supports the homeowner.

“Every borrower should have access to information that allows them to make sound financial decisions and enable them to continue to make their mortgage payments,” Spencer said. “If you can educate borrowers on their options in advance of a life event, when one happens it’s all about taking action.”

Mortgage professionals can break through these barriers by helping borrowers understand what to expect over the lifecycle of their mortgage.

“Laying the foundation of what the interactions could be in the course of some of these life events can help borrowers be more successful, have less interruptions with their payments and maintain their credit profile for future home purchases,” she said.

Relevant outreach creates a personalized touch and creates trust.

Spencer points out that some servicers are taking creative approaches to provide guidance that’s tailored to an individual homeowner’s specific needs and situation, including customized communication and use of data to help identify and assist with early intervention.

Automated homeowner outreach about how to apply for mortgage relief, for example, can be a fast follow after a borrower stops using auto draft for monthly mortgage payments — a predictive, proactive and relevant message that can prevent defaulting on the loan.

Similarly, an escrow analysis requested by the borrower after receiving an adjustment notice can be included with a quick video clip explaining the reason for the increase, and text message links to informational clips can better outline eligibility requirements and the application process for a payment deferral or loan modification. Both forms of outreach provide user-friendly, end-to-end guidance on mortgage processes that might be unfamiliar to the homeowner.

However, sometimes the best guidance for borrowers, including those who don’t qualify for a loan modification, isn’t to pursue a home retention option.

Instead, housing professionals across the ecosystem, from real estate agents to lenders to servicers, may suggest potential enhancements that would yield the property’s maximum value, allowing homeowners to use their equity as a tool for a clear exit strategy and move into a more affordable property.

“This is becoming a bigger opportunity due to house price appreciation,” Spencer noted.

If a borrower can’t financially recover from a life event, options such as selling their property allow them to exit homeownership gracefully, rather than going down the path of foreclosure.

And integrating debt management companies into servicing operations, which assist with budgeting, debt payoff and managing creditors on a homeowner’s behalf, help drive down recidivism.

Housing counselors help bridge the gap.

Another opportunity for improved homeowner education is integrating housing counselors as a resource.

“Housing counselors can provide the post-purchase education that the borrower may need,” said Stacey Walker, director of affordable lending at Freddie Mac Single-Family.

This can include information on budgeting and what to expect after purchasing a home, home maintenance advice, scams to avoid, disaster-related responses, what to do if a borrower becomes unemployed, what to expect from a servicer conversation and options for mortgage relief.

But there are misconceptions to overcome, including that their services are expensive. While the U.S. Department of Housing and Urban Development (HUD)-approved counseling agencies may charge reasonable and customary fees if they don’t create a financial hardship, Walker notes that many of the services are done at no cost to the homeowner.

Additionally, all counselors who work at HUD-approved agencies must undergo a rigorous process to become HUD-certified. This includes passing a written exam demonstrating competency in six key areas and following national industry standards for homeownership education and counseling.

“For homeowners, there’s often less apprehension than speaking to a servicer,” Walker said. “A borrower may benefit from an initial conversion with a housing counselor, which gives them time to process their options before reaching out to their servicer.” She cites the Freddie Mac Borrower Help Centers and Network and the housing counseling agency directory on the HUD website as being particularly helpful resources.

Freddie Mac offers effective default management solutions that servicers can offer to homeowners facing financial hardships, including payment deferrals and the Freddie Mac Flex Modification.

“Freddie Mac, servicers, housing counselors and other mortgage professionals can remind borrowers facing a life event that they do have options,” Spencer said. “Borrowers may be able to take advantage of one or more solutions in our toolkit to get back on track.”

Walker adds that housing counselors who partner with Freddie Mac can work directly with homeowners to assuage their concerns. “These professionals are educated about our loss mitigation tools and solutions so they can assist borrowers who call them with questions and empower them with information,” Walker said.

Above all else, mortgage professionals trying to help borrowers understand their options in case of a life event or disaster need to keep the lines of communication open from home purchase and beyond. As Spencer put it, “when we collaborate on homeowner education throughout the mortgage lifecycle, we advance sustainable homeownership and mitigate risk.”

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