Financial advisors can hold a range of certifications and licenses. Two such designations are CIMA (certified investment management analyst) and CFP (certified financial planner). The CIMA is intended for those who help people manage their investments, while the CFP is a much broader certification covering all aspects of personal finance. However, a CFP may also specialize in investment management.

For help finding a financial advisor who can help you achieve your goals, use SmartAsset’s free financial advisor matching service.

What Is a CIMA?

A CIMA is a certified investment management analyst. This certification is offered by the Investments & Wealth Institute for financial advisors who focus on investment management. In fact, Investment & Wealth Institute’s welcome page for the CIMA certification highlights the average assets under management (AUM) of those with a CIMA ($297 million).

A CIMA can work with either individuals or corporations, but their individual clients tend to have high net worths. They may help with a variety of investments, such as retirement funds, endowments or corporate investments.

One way CIMAs differentiate themselves is they must show expertise in business strategy, operations and management. Hence, they are well suited to helping not only individuals but also businesses.

CIMA Prerequisites

There are two primary prerequisites before one can obtain the CIMA. Firstly, applicants must have three years’ financial services experience. In addition, they must have a satisfactory record of ethical conduct. That determination is made by Investment & Wealth Institute, the organization that sponsors the certification.

CIMA Exam

CIMA certificates are available for both business accounting (BA) and professional qualifications. The BA exam is 120 minutes long with four sections; the first three have 60 questions each, while the fourth has 85 questions. The professional qualification exam comes in the form of three 90-minute-long objective tests, plus 3-hour case studies to go with each objective test. Results are issued 6-8 weeks after the case study window closes.

What Is a CFP?

A CFP is a certified professional planner, which is a professional who can focus on a wide range of personal finance specialties. For example, they may specialize in investment advice, insurance, tax or estate planning, retirement and more. Generally, CFPs focus on just one of these areas but can help you with the basics in all aspects of personal finance.

CFPs meet with clients and take inventory of all of their finances, including their investments, properties and cash, as well as any outstanding debt. Then, they work with clients to create a tailored financial plan to help them meet their goals.

Because the CFP is so broad, CFPs will often hold other certifications or licenses that match their area of expertise. Hence, a CFP might also have a CIMA or other certifications such as the retirement income certified professional (RICP).

CFPs must also adhere to CFP Board’s ethical standards, which includes the disclosure of their involvement in cases involving things like criminal activity and bankruptcy.

CFP Prerequisites

Those who want to obtain the CFP must have at least a bachelor’s degree from an accredited college or university. They must also have three years of financial planning experience or at least 6,000 hours of equivalent part-time experience.

CFP Exam

The CFP exam consists of 170 multiple-choice questions divided into two 3-hour sections for a total of six hours. There is a 40-minute break between the two sections. Each section is divided further into two subsections. There are standalone questions as well as those that go with case studies. The exam is scored on a pass/fail basis.

CIMA vs. CFP

While the CIMA and the CFP are distinct certifications, the two have some similarities in terms of their requirements, as noted in the table below.

Comparison of CIMA and CFP CIMA CFP Issuing organization Investments & Wealth Institute Certified Financial Planner Board of Standards Prerequisites – 3 years’ financial services experience
– Satisfactory record of ethical conduct – Bachelor’s degree or higher
– 3 years’ experience or 6,000 hours of part-time experience Training requirements – Educational component offered by approved registered education provider
– In-class program at The Wharton School, University of Pennsylvania or online through Yale School of Management CFP-board registered exam or hold a relevant license, certification or degree Continuing education 40 hours every 2 years 30 hours every 2 years

Those looking for a financial advisor may wonder which certification is better for them, and it really depends what services you’re looking for. If you only want investment advice, a CIMA is a good fit. If you’re looking for more holistic planning, a CFP should be able to get the job done. Of course, some advisors have both certifications, giving you the best of both worlds.

Bottom Line

CFPs and CIMAs can have many similarities, but there are also notable differences. For instance, a CFP might advise clients on investment strategies. However, CFPs also specialize in many different areas of finance, such as tax and estate planning and insurance. Meanwhile, the CIMA is intended for financial advisors who provide investment advice. But CIMAs must also have at least some knowledge of business processes and strategy, which is absent from the CFP requirements. Both programs are rigorous, albeit in different ways.

Tips for Financial Planning

• Whether you need a CFP or a CIMA, it is critically important to invest in your retirement. But if you don’t know how much you have saved for retirement, you could be setting yourself up for financial hardship. Use SmartAsset’s free retirement calculator to estimate your retirement savings.

• Regardless of certifications, a financial advisor can help you achieve your financial planning goals. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Photo credit: ©iStock.com/AndreyPopov, ©iStock.com/VioletaStoimenova, ©iStock.com/ijeab

The post CIMA vs. CFP Designations for Financial Advisors appeared first on SmartAsset Blog.

I am very happy to report that I passed the CIMA exam! Although I was part of the educational program at another school, there is no way I could have passed without the Chicago Booth review program and having been also granted access to the Chicago Booth CIMA program educational materials and live session videos. Kathleen’s voice was a constant companion as I listened to classes driving and even while on family vacation. Thank you so very much!

- Alan P. Jesiel, CFP®, CIMA®, Vice President, Senior Relationship Strategist, PNC Wealth Management

The University of Chicago has a well-planned approach to teaching the CIMA curriculum. All of the important concepts are covered in a clear, concise format. The professors really want to make sure you understand the material and go to great lengths to provide intuition behind some of the math concepts. The class is very interactive and the faculty make themselves easily accessible throughout the class. I strongly recommend this program to anyone considering attaining the designation.

- Todd Muentzer, CIMA®, ETF Specialist

This was a great overall experience.  Kathleen does a great job presenting and reviewing the content.  It was also beneficial to connect with other students preparing for the exam.

- Jon Maldonado, Financial Advisor, UBS Financial Services

Excellent program with in-depth analysis of calculation needed for course material.

- Robert Filetti, Robert Baird

This class was far above my expectations.  This is a great value for the cost.

- Alicia Frye, Regional Business Consultant, Symmetry Partners

I got the passing score I needed to finally achieve my CIMA credentials. I was and am still ecstatic about this accomplishment and absolutely credit it to the Chicago Booth workshop and team for helping me get here. I would tell anyone interested in the CIMA program or who is trying to finish the certification process that the Booth workshop is the way to go.

- Jen Litton, CDFA, CIMA®

Having the two day review class at Booth is a major differentiator from the other education programs. Having a two day intensive review upon completion of the material helped me identify areas of weakness that I needed to focus on before the exam and embolden my confidence in the material I knew well coming into the exam.

- Greg Goin CFP®, CIMA®, CLU®, CRPC® Advisory Solutions Director

There are very few people that I have met that have a true depth of knowledge in their field.  Kathleen is one of them.  She is amazing in her understanding of the concepts.

- Program past participant

What is Common Case Study considering the New Strategic Level?
In the new Syllabus all 3 subjects in Strategic Level are integrated through a Common Case Study. A common scenario will be provided for the assessment. This is called the Pre - Seen material. This will be available well in advance before the exam. The Pre-seen material is common to all the 3 subjects ( ES , PS , FS). The questions will be developed through this material.

Why is this different from the current Strategic level?
The teaching and learning style should be remarkably different since all 3 subjects should follow the same strategy in the new syllabus to ensure exam success. Analysis of the Pre- seen should be carried out through a common approach.

How to teach the new strategic level
The students should not be exposed to different approaches since it will negatively influence the understanding of the scenario, especially in answering the questions at the exam. The case study will provide information regarding a particular organisation. This information should be analysed to determine the strategic direction of the organisation in the future.

What is the competence required to teach the new strategic level
The lecturer should be multi qualified based on different specialised areas to effectively coach the students to analyse the case study. This is not an ordinary examination. The lecturer should have prior experience in teaching for case study examinations.

The teaching technique should be Integrated Case Analysis where the scenario should be evaluated based on a common basis covering every issue. The students should not be confused with different approaches since that can create negative results in the examination due to lack of focus.

What's the role of the student?
A student entering the strategic level should have a clear understanding of the exam and the nature of assessment. The lecturer and the process of course delivery will be the most important variable considering exam success. The student should develop writing skills and integrative thinking.

How to develop integrative thinking and analytical skills of students
All 3 subjects should have a common assessment. There should be mock exams under real conditions for all the subjects in the strategic level to ensure consistency of application. The mock exams should comprise common Pre- seen material to ensure effective training for the real exam. The papers of the mock examination should be marked by the lecturer through the common assessment criteria specified by CIMA.

What's the competence that can be used from the Managerial Level?
Enterprise Operation (EO)
This subject will directly provide the basic knowledge required to analyse the Common Case Study. This subject will help the student understand the given organisation and the issues effectively to ensure exam success.

Enterprise Management (EM)
This subject will provide the basic competence required to understand the strategy of the organisation. It provides the integrated knowledge required to manage a particular organisation. The students are expected to enhance the same competence developed through this subject to the New Strategic Level

What's the role of the Enterprise Management Pillar in the New Syllabus?
This is the driving force for the management of an organisation. This pillar provides the basis for organisational development and strategy formulation. It will directly contribute to the exam success in the TOPCIMA.

A sound knowledge in the Enterprise Management pillar will provide a clear benefit for the students in the New Strategic Level and the TOPCIMA examination.

Big accounting organizations are weighing in on the ESG factor, which is reshaping industries from finance to fashion.

A report released Monday by the International Federation of Accountants, or IFAC; the American Institute of CPAs, or AICPA, and Chartered Institute of Management Accountants, or CIMA, found that while ESG reporting is on the rise — it’s still subject to variation.

More from WWD

The report surveys 1,400 global companies, focusing explicitly on 2020 data, and is an update to the inaugural study from the year before. A follow-up study analyzing 2021 data is expected to be released later on.

Some 58 percent of global companies obtained ESG assurance (or a third-party aid) in 2020, up from 51 percent the previous year, yet these assurances were mostly “limited in scope” because of selective disclosure, per the report. Another finding was that 61 percent of ESG assurance services were performed by professional accounting or auditing firms. The report contends that without the help of professionals, ESG data is subject to greater variability and less oversight.

In plain speak, greenwashing is still palpable as fashion’s attempts at transparency programs reveal.

That being said, the majority (or 92 percent) of global companies provided some ESG data to investors, either through integrated, annual or standalone reports. Greenhouse gas emissions dominated reporting categories but many companies are still selectively disclosing.

“It’s encouraging to see continued high levels of reporting on sustainability information and an overall increase in assurance globally,” International Federation of Accountants’ chief executive officer Kevin Dancey said in a statement. “But our research tells us that 80 percent of companies are using multiple frameworks or standards, which results in data that is not consistent, comparable or decision-useful for investors, stakeholders or society at large.

Story continues

Disclosure is getting more straightforward, however, with some help. Frameworks like the Sustainability Accounting Standards Board, or SASB, standards, as the report showed, have grown in use and mention by companies as regulatory agencies look to tighten disclosure proposals. Already, many fashion players, among them Adidas, Allbirds, Gap Inc., Kering, Levi Strauss & Co., Nike Inc., PVH Corp., VF Corp. and more, report on SASB.

IFAC’s Dancey underlined that sustainability reporting and assurance will only reach its full potential when it’s based on a “harmonized global system” such as the International Sustainability Standards Board’s comprehensive baseline of disclosure.

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Click here to read the full article.

For returning students, there may be changes to the majors and minors available and the courses you need to take. Go to the section called ‘Transitional Provisions’ in the Regulations to find out more.

In some cases the qualification or specialisation you enrolled in may no longer be taking new enrolments, so may not appear on these web pages. To find information on the regulations for these qualifications go to the Massey University Calendar.

Please contact us through the Get advice button on this page if you have any questions.

• 58% of global companies obtained ESG assurance in 2020

• Assurance engagements were mostly limited in scope

• 61% of ESG assurance services were performed by professional accounting firms, with substantial variation in practice within different jurisdictions

NEW YORK, August 01, 2022--(BUSINESS WIRE)--The number of global companies obtaining independent assurance on their environmental, social and governance (ESG) information increased from 51% to 58% in 2020, compared to the previous year, according to new data from the International Federation of Accountants (IFAC), American Institute of CPAs (AICPA) and Chartered Institute of Management Accountants (CIMA), the latter two of which represent the unified voice of the Association of International Certified Professional Accountants.

The 2020 information released today is an update to the accounting bodies’ inaugural study last year that examined global trends in both sustainability-related reporting and its assurance. This latest update offers the first benchmark of progress relative to the original data. A follow-up study that incorporates 2021 information is expected to be released at a later date.

When it comes to ESG assurance, 82% of engagements were limited in scope in 2020, essentially the same as in 2019 (83%). Some 61% of assurance engagements were performed by audit firms on a global basis, a slight decline from the previous year (63%). Jurisdictions with some of the highest rates of assurance performed by professional accountants include Australia, France, Italy, Germany and Spain. In other countries, including South Korea, the United Kingdom and the United States, most assurance engagements are conducted by service providers outside of the accountancy profession. Professional accountants have high professional standards, including independence, and are subject to regulatory oversight, which is critical in this space.

On the reporting side, the study found 92% of global companies provided some ESG data to investors, either through integrated, annual or standalone reports. The use of, or reference to, Sustainability Accounting Standards Board (SASB) standards more than doubled in 2020. This is important because new disclosure proposals from the International Sustainability Standards Board (ISSB) include and build upon SASB standards. (SASB’s parent organization, the Value Reporting Foundation, will consolidate into the IFRS Foundation on Aug. 1, 2022, to support the work of the ISSB.)

Story continues

"It’s encouraging to see continued high levels of reporting on sustainability information and an overall increase in assurance globally," said IFAC CEO Kevin Dancey. "But our research tells us that 80% of companies are using multiple frameworks or standards, which results in data that is not consistent, comparable or decision-useful for investors, stakeholders or society at large. Sustainability reporting and assurance will only reach its full potential when it is based on a harmonized global system led by the International Sustainability Standards Board’s comprehensive baseline of disclosure."

The 2020 study data also shows 89% of companies presented at least some information in each of four categories: greenhouse gasses, other environmental factors, social and governance. Yet only 43% provided assurance for all four categories. The most common area for independent assurance was greenhouse gases (95%).

Seventy percent of global companies that engaged a professional accounting firm to perform the ESG assurance engagement chose the firm that audits their financial statements.

"High-quality reporting requires high-quality assurance," said Susan S. Coffey, CPA, CGMA, AICPA & CIMA’s CEO of public accounting. "Auditors already have a holistic view of a company’s risk profile, structure and processes, so it makes sense for that firm to also engage in ESG assurance. Professionally qualified and licensed accountants have the requisite expertise, objectivity, integrity and commitment to professional standards that are essential for instilling trust in ESG reporting."

About the Study

IFAC and AICPA & CIMA partnered with Audit Analytics to understand the state of play involving environmental, social, and governance (ESG) reporting and assurance practices on a global basis. The inaugural version of the study was published last year. This latest update reviewed data from 1,400 global companies from the G20 nations plus Hong Kong S.A.R., China and Singapore. The full methodology is referenced within the study.

About IFAC

IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in 135 jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.

About the Association of International Certified Professional Accountants, and AICPA & CIMA

The Association of International Certified Professional Accountants (the Association), representing AICPA & CIMA, advances the global accounting and finance profession through its work on behalf of 689,000 AICPA and CIMA members, students and engaged professionals in 196 countries and territories. Together, we are the worldwide leader on public and management accounting issues through advocacy, support for the CPA license and specialized credentials, professional education and thought leadership. We build trust by empowering our members and engaged professionals with the knowledge and opportunities to be leaders in broadening prosperity for a more inclusive, sustainable and resilient future.

The American Institute of CPAs (AICPA), the world’s largest member association representing the CPA profession, sets ethical standards for its members and U.S. auditing standards for private companies, not-for-profit organizations, and federal, state and local governments. It also develops and grades the Uniform CPA Examination and builds the pipeline of future talent for the public accounting profession.

The Chartered Institute of Management Accountants (CIMA) is the world’s leading and largest professional body of management accountants. CIMA works closely with employers and sponsors leading-edge research, constantly updating its professional qualification and professional experience requirements to ensure it remains the employer’s choice when recruiting financially trained business leaders.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220801005286/en/

Contacts

Media:

Jennifer DiClerico
IFAC
212.286.9344
jenniferdiclerico@ifac.org

Jeff May
AICPA & CIMA
212.596.6122
jeffrey.may@aicpa-cima.com

Big accounting organizations are weighing in on the ESG factor, which is reshaping industries from finance to fashion.

A report released Monday by the International Federation of Accountants, or IFAC; the American Institute of CPAs, or AICPA, and Chartered Institute of Management Accountants, or CIMA, found that while ESG reporting is on the rise — it’s still subject to variation.

More from WWD

The report surveys 1,400 global companies, focusing explicitly on 2020 data, and is an update to the inaugural study from the year before. A follow-up study analyzing 2021 data is expected to be released later on.

Some 58 percent of global companies obtained ESG assurance (or a third-party aid) in 2020, up from 51 percent the previous year, yet these assurances were mostly “limited in scope” because of selective disclosure, per the report. Another finding was that 61 percent of ESG assurance services were performed by professional accounting or auditing firms. The report contends that without the help of professionals, ESG data is subject to greater variability and less oversight.

In plain speak, greenwashing is still palpable as fashion’s attempts at transparency programs reveal.

That being said, the majority (or 92 percent) of global companies provided some ESG data to investors, either through integrated, annual or standalone reports. Greenhouse gas emissions dominated reporting categories but many companies are still selectively disclosing.

“It’s encouraging to see continued high levels of reporting on sustainability information and an overall increase in assurance globally,” International Federation of Accountants’ chief executive officer Kevin Dancey said in a statement. “But our research tells us that 80 percent of companies are using multiple frameworks or standards, which results in data that is not consistent, comparable or decision-useful for investors, stakeholders or society at large.

Disclosure is getting more straightforward, however, with some help. Frameworks like the Sustainability Accounting Standards Board, or SASB, standards, as the report showed, have grown in use and mention by companies as regulatory agencies look to tighten disclosure proposals. Already, many fashion players, among them Adidas, Allbirds, Gap Inc., Kering, Levi Strauss & Co., Nike Inc., PVH Corp., VF Corp. and more, report on SASB.

IFAC’s Dancey underlined that sustainability reporting and assurance will only reach its full potential when it’s based on a “harmonized global system” such as the International Sustainability Standards Board’s comprehensive baseline of disclosure.

Sign up for WWD's Newsletter. For the latest news, follow us on Twitter, Facebook, and Instagram.

Click here to read the full article.