Financial advisors have many certification options available to them, but choosing the right certification can be challenging.
For example, CFP certification remains the most widely recognized mark in the industry, with over 103,000 professionals holding the designation. However, many CFPs pursue additional certifications.
A recent study by the Investments & Wealth Institute (IWI) and research firm CEG Insights highlights the financial benefits associated with three key designations: Certified Investment Management Analyst (CIMA), Certified Private Wealth Advisor (CPWA), and Retirement Management Advisor (RMA).
According to Financial Planning, the study surveyed 1,093 advisors, comparing those with at least one of the three IWI designations to those without them. On average, advisors holding one or more of these certifications managed significantly higher assets under management (AUM) and earned more than their counterparts. Specifically:
- Advisors with IWI certifications managed an average of $267 million more in AUM than those without them.
- The mean annual income for certified advisors was 33 percent higher than that of advisors without the designations.
- Teams led by CIMA-certified advisors managed an average of $659.5 million in AUM, while CPWA holders managed $483.2 million, and RMAs managed $500.7 million.
The study also found that only 6.7 percent of advisors without these certifications reached the elite level of at least $1 million in annual net income, compared to 12 percent of CIMAs, 11.2 percent of CPWAs, and 13 percent of RMAs.
In an increasingly complex financial landscape, professional designations provide advisors with a competitive edge. The IWI study reinforces the link between advanced certifications and higher income, greater AUM, and stronger client relationships.
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