FINRA education - FINRA Administered Qualification Examination Updated: 2023

When you’re looking for a financial advisor, you’ll see any number of certifications and credentials listed on the business cards and websites of prospective candidates. From CPAs to CFAs, ChFCs to IARs, the long and growing list can be overwhelming.

Understanding what all of these acronyms stand for allows you to choose the best financial advisor for your needs. Let’s take a closer look at the 10 most common financial professional certifications.

CPA: Certified Public Accountant

Of all the financial advisor certifications, you’re probably most familiar with certified public accountant. Although most people associate CPAs with taxes, their expertise goes far beyond your annual tax filing.

CPAs handle jobs from financial reporting to audit work and forensic research. Even if your needs are slightly less complicated, employing a CPA can still save you a bundle of money and keep you out of a tax court, too. In short, if your finances progress beyond entering W-2 info into tax software, you’ll need a CPA.

The CPA certification has been around since the late 19th century. It’s a tough qualification to earn. Requirements vary by state, but candidates generally need a specialized degree, one year of work experience, and they must pass the challenging Uniform Certified Public Accountant Examination.

CFA: Chartered Financial Analyst

A chartered financial analyst has in-depth knowledge of asset management and securities analysis, as well as a professional commitment to the highest ethical standards. The common habitat for CFAs is handling high-level research and analysis for large financial companies and investment firms, but they may also work with high-net-worth private clients, providing investment advice, portfolio management and risk management services.

The CFA Institute says it takes 1,000 hours of study, four years of professional experience and a three-part exam to become a CFA charterholder. The pass rate for all three levels of the CFA exam is just 20%. Once upon a time, the CFA qualification was considered a good plan B if you weren’t cut out for an MBA. That’s not the case anymore, and today, CFAs rank among the financial advisory elite.

CFP: Certified Financial Planner

A certified financial planner takes a holistic, all-encompassing approach to financial planning, meeting their clients’ needs for budgeting, retirement planning, life insurance, taxes and estate planning. CFPs commit to a professional requirement to act as fiduciaries, meaning their financial advice must always put their customers’ best interests first.

The CFP is a good candidate for people who want a comprehensive financial plan. If you need help in choosing investments, planning for retirement, setting aside money for a child’s education, and many other goals, a CFP is a wonderful choice. Certified financial planners have many specialities, from the types of clients they work with to the types of work they take on, so check your candidate’s specializations before making a choice.

CFPs must take six or seven classes, depending on their program, covering the ins and outs of financial planning as well as pass a notoriously difficult exam and accrue years of financial planning experience before they can add CFP behind their name.

Related: Find A Financial Advisor In 3 minutes

ChFC: Chartered Financial Consultant

CFPs and a chartered financial consultants offer very similar services: personal financial management, retirement planning, tax issues, estate planning, life insurance and special needs planning for parents and guardians.

The chartered financial consultant certification may offer slightly more depth than the CFP, as it requires additional coursework: eight courses to the CFP’s six or seven. However, unlike CFPs, ChFCs are not required to pass one comprehensive exam and instead must pass exams following each course they take. ChFC certification requires candidates to have three years of full-time experience in the financial services industry, and ChFCs must bind themselves to a fiduciary standard.

ChFCs’ broad knowledge base makes them superior candidates for managing complex individual or family estates and providing investment strategies to small businesses.

RIA: Registered Investment Advisor

Unlike the other certifications on this list, registered investment advisor refers to a type of company, not a type of financial advisor. The registered part of the name comes from the fact that RIAs must register with the Securities and Exchange Commission (SEC) or a state regulatory agency.

RIAs are fully regulated fiduciaries that may provide financial planning or investment services. Practically speaking, though, their work with clients extends beyond simple investment advice, offering services such as retirement planning, insurance, estate planning and even concierge services like marriage and divorce consultations.

IAR: Investment Adviser Representative

An investment adviser representative (IAR) is a financial professionals who work for a RIA. Typically, IARs are certified via the Series 65 or Series 7 exams, and the Series 66, administered by FINRA, which the federal government authorizes to oversee US broker-dealers. In addition, they generally have one (or more) of the certifications listed above, like CFP or CFA.

The draw of IARs is their strong commitment to fiduciary responsibility. IARs must disclose conflicts of interest and tell clients about more efficient products, even if it means a smaller commission. This contrasts with advisors working under the “suitability standard,” who sometimes offer high-commission products that meet customer needs, without suggesting lower-commission alternatives that might better suit them.

If you’re working with a financial advisor through a company or financial institution, make sure to determine whether they are an IAR or a registered representative held only to suitability standards.

CFF: Certified Financial Fiduciary

Certified financial fiduciary (CFF) is an additional qualification that financial advisors undertake to supplement their existing professional certifications. In essence, it’s meant to signal that the advisor adheres to the highest possible standard of fiduciary duty (yes, there’s more than one kind of fiduciary).

CFFs are trained to uphold the highest moral, ethical and fiduciary standards of service when providing investment advice to potential and existing clients. The National Association of Certified Financial Fiduciaries (NACFF) administers CFF training and awards the certification.

The CFF is a relatively new professional designation, first created in 2018, during the rise and fall of the Department of Labor’s ill-fated fiduciary rule. As such, the CFF is less common than the others profiled here. Before it was struck down in federal court, the fiduciary rule would have held all financial advisors to a strict fiduciary rule, and the CFF was created, in part, to prove an advisor’s commitment to this rule.

CFF candidates must pass stringent requirements: They must hold a professional financial certification or license or have enough education and experience to pass NACFF’s bar. A background check is conducted to examine their moral, ethical and fiduciary record. Candidates must complete comprehensive training and pass the CFF exam. Crucially, they agree to uphold the CFF Code of Conduct for fiduciary responsibility.

RICP: Retirement Income Certified Professional

Administered by the American College of Financial Services, the retirement income certified professional (RICP) program trains financial advisors to help clients claim Social Security, define risk factors and manage distributions from retirement plans like a 401(k). But above and beyond retirement income issues, the program also helps advisors understand Medicare, aid in managing and selecting life insurance, plan long-term healthcare and handle retirement tax issues, which frequently trip up clients.

RICP certification is sought by experienced financial advisors, lawyers, accountants and bankers―anyone who works in advisory fields that wants a heightened understanding of all the factors that impact retirement planning. RICP training aims to foster a deep understanding of retirement income issues, allowing advisors to create plans for clients that cover income, housing, healthcare, taxation, life quality and more.

CPWA: Certified Private Wealth Advisor

Certified private wealth advisor (CPWA) is aimed at wealth managers who serve affluent clients. Wealth management advisors select portfolios of investment securities for their clients and manage the portfolios.

Generally they do not offer a broad selection of advice for a client’s entire financial life, confining themselves only to managing investments. This isn’t a flaw in their service offering as high-net-worth individuals generally employ planning teams of several experts to meet their needs.

Preparation courses for the CPWA teach candidates to create strategies that maximize growth, minimize taxes and help clients pass their wealth on to the next generation.

CLU: Chartered Life Underwriter

A chartered life underwriter (CLU) is a financial advisor that specializes in life insurance planning. This isn’t a standalone service: CLUs operate as part of an estate planning team, usually for high-net-worth clients with complex holdings, including family businesses and complicated asset structures.

The American College of Financial Services administers the CLU qualification. Candidates must have three years of relevant experience, pass eight training classes and sit for an exam. There’s a continuing education requirement for CLUs of 30 hours every two years. The CLU certification is highly respected among professionals and is nearly 100 years old―second only in age to the CPA.

Balance short-term profitability with long-term value creation to manage projects more effectively.

Engineers are often required to be conversant with the terminology and statements that accountants use. Technical expertise in projects, service delivery, production or other areas can only be fully realised if engineers understand the accounting and reporting processes that drive businesses.

‘Financial Management’ enables participants to upskill in financial, management and project accounting. Develop what-if models and gain a deeper appreciation of the impact of decisions on financial measures.

Upon completion, you’ll be able to assess the financial health of an organisation and interpret financial information in order to inform your own decision-making.

You can upgrade this course to a CMI Level 5 qualification. To find out how, visit imeche.org/CMItraining/Level5.

Who should attend?

Engineers and non-engineers at all levels responsible for projects, service delivery or production, financial management will help you determine the correct balance between risk and profit maximization

How will I benefit?

After the course you will be able to:  

• Understand the main financial statements; profit and loss, balance sheet and cash flow

• Recognise the critical importance of cash flow and working capital

• Manage resources more effectively

• Develop and manage budgets

• Know how to evaluate opportunities and when necessary cut the right costs

• Determine and better manage Key Financial Indicators (KFIs)

• Undertake what-if analysis to better understand risk

• Recognise the financial impact of 'soft' performance drivers - relationships, culture, skills, brand and knowledge

• Build robust business cases and justify investment decisions – for equipment, marketing, new staff, training

• Balance short-term profitability with long-term value creation

Key topics

• Understanding financial statements - profit and loss & balance sheet

• The importance of cash flow

• Managing working capital - debt, credit and inventory

• Developing a "what-if" sensitivity models.

• Allocating cost

• Approaches to budgeting

• Analysing financial performance - profitability, liquidity, financial status

• The role of the Balanced Scorecard in achieving financial targets

• Project finance and capital budgeting

• Value Management and economic profit

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The UK government’s flagship “T-level” technical qualifications are failing to attract the expected numbers of students, a survey has shown, sparking calls for an urgent revamp of the scheme.

The qualifications, launched in 2020 in a shake-up of post-16 education, were intended to boost vocational learning but have been plagued by issues including securing industrial work placements for students.

The qualifications were designed to Boost the quality and availability of skilled labour, particularly to the manufacturing sector, as part of an effort to drive the UK’s sluggish economic growth.

A majority of further education colleges that deliver the qualifications said that enrolments were lower than expected for the 2023 academic year in half of T-level subjects, according to an Association of Colleges survey due to be published on Friday.

David Hughes, chief executive of the Association of Colleges, which represents the sector, said the survey showed that the government’s ambitious plans to increase T-levels this year had failed.

“Despite the government’s rhetoric on the success of T-levels, the stark reality is that across the country young people are simply not choosing them in the numbers hoped for,” he said.   

T-levels were rolled out by the Department for Education to replace the previous BTec qualifications, which were seen as overly complex and failing to deliver the necessary workplace skills.

Ofsted, the schools inspectorate, in September said in a report there had been “teething issues” with T-levels and added it had found “a range of shortcomings” that the Department for Education would want to address.

In October, Rishi Sunak announced a further shake-up of the UK’s education system by pledging to introduce a “British baccalaureate”, which would make all non-vocational 16 to 18-year-old pupils study maths and English.

Hughes said the announcement had confused the messaging on T-levels and raised questions among parents and pupils about the government’s commitment to the qualification.

The Association of Colleges has urged education secretary Gillian Keegan to better promote T-levels to parents and students, introduce digital work placements, and make changes to both content and assessment.

It also warned that the T-level requirement to pass maths and English GCSE was excluding a large number of 16-year-olds from the qualifications.

The share of students at English schools getting a grade 4 or above in both subjects fell from 66 per cent in 2019-20 to 61 per cent in 2022-23.

New T-level qualifications have been introduced in waves since 2020. This year qualifications were added for business and administration, engineering and manufacturing, and legal, finance and accounting.

A fifth of each course is made up of a mandatory 45-day industry placement to provide students hands-on experience.

The AOC survey found that the “worst” performing subject was science, where almost nine in 10 providers said enrolments were lower than expected, up from two-thirds the year before.

For the new legal services subject more than 70 per cent of providers said enrolments were below their expectations.

Last year, the second year where there were 10 T-level subjects, 91 per cent of students achieved at least a pass. However, only 3,448 pupils completed their course, a third lower than the number who enrolled in 2021.

Darren Hankey, the principal at Hartlepool College in north-east England, said the college had been allocated funding for 100 T-level students across four subjects but had only managed to recruit 47. 

Though he supported the aim of using T-levels to create “parity of esteem” with academic qualifications, Hankey said the work placement requirements were impractical.

“There are five colleges in this area with perhaps 1,000 students studying engineering. We just don’t have the numbers of business placements to support that, or that transport infrastructure to get students to the placements. We just need to think this through,” he said.

He added that the squeeze would intensify hugely if the government pushed through with its pledge to remove funding from BTecs in order to force students to take up T-levels.

The opposition Labour party has said it will “pause” the defunding process to ensure there are vocational qualifications open to all students.

Seema Malhotra, shadow skills minister, said that while Labour supports the introduction of T-levels and the provision of high quality vocational pathways, the current government’s “mismanagement” of the rollout had led to low enrolment levels and “threatened our future skills pipeline”.

The Department for Education said it was backing T-levels with more than £250mn to help colleges deliver the additional teaching hours and industry placements.

“T-levels are only two years old, and already they are delivering brilliant outcomes — and we expect many more young people to benefit in the years to come,” it added.

ORLANDO, Fla., Oct. 12, 2023 /PRNewswire/ -- In pursuit of its mission to make top-quality financial education resources widely accessible, the Florida Financial Educators Council has announced that certain schools, nonprofit organizations, and community groups have become eligible to get complimentary financial education programming.

The support and materials are offered free to Florida-based organizations that have an expressed interest in bringing financial wellness education to learners of all ages, with the purpose of making a positive difference in their communities.

Beneficiary organizations may access these resources through two pathways – one with eligibility requirements, and one without. Learn the qualification guidelines here:  https://fl.financialeducatorscouncil.org/financial-education-programs-florida-organizations/

The Florida Council chooses its activities by taking the National Financial Educators Council's national-level mission and focusing it on the unique financial wellness needs of Floridians. Many citizens of Florida face poverty, with a percentage above the nationwide average. Sunshine State residents also suffer from higher than average food and housing insecurity rates in the country.

On financial literacy test results, just a little over half of Floridians have been able to earn a passing grade to date. Florida receives a grade of "F" for its financial literacy standards in schools, according to the National Financial Educators Council. These factors have an impact on Florida residents' financial wellness and indicate challenges the state may encounter in the future.

In the short-term, the Florida Financial Educators Council has an objective to increase financial literacy levels in the state. Across the long-term, the Council hopes to help Floridians work toward improved economic empowerment and security.

Community groups looking for financial wellness programming are invited to apply for free resources and support. All organizations will qualify for some level of complimentary resources. Certain groups will be chosen to receive customized financial literacy programs that are completely managed.

The Florida Chapter also provides financial education speakers in local regions around the state to make presentations to beneficiary organizations. The Council's well-qualified team of Certified Financial Education Instructors (CFEI^®) around Florida are available to deliver this training as part of its efforts to build local financial wellness programs that can be taken to scale. Richard Cason, a CFEI and founder of Emancipation Financial Wellness Group, is one champion who leads group financial education programming and conducts advocacy speaking engagements to help promote greater financial wellness across Florida.

The Florida Financial Educators Council represents a state-level chapter of the National Financial Educators Council – a Certified B Corporation^® and IACET Accredited Provider. The NFEC mobilizes global teams of financial literacy champions and advocates, empowering them with resources and training to spread the financial health message and support communities around the world.

Contact:
Trevor Stoll
702.620.3059
365184@email4pr.com

SOURCE National Financial Educators Council