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Which is easier to get CFP or ChFC

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Feb 21, 2007 1:00 am

CFA is actually harder than the CPA, according to my co-worker at the time.   He was already a CPA and we set for the CFA together.  He is now on level 3.

When I took level 1 the pass rate was 30%.

Feb 21, 2007 3:41 am

From what I've been told by the CFA Institute leadership, the CFA is designed to be on par with the bar.

Feb 21, 2007 3:56 am

AllREit,

At this point, I just want the initials behind my name so I can market myself better.  Studying the material has definitely made me a better advisor and more knowledgeable about the portfolio construction.

Feb 21, 2007 4:54 am

[quote=san fran broker]

From what I've been told by the CFA Institute leadership, the CFA is designed to be on par with the bar.

[/quote]

Well I've heard numerous CPA/Attorneys say the CPA exam was more difficult than the bar so go figure.  Any CPA/Attorneys want to chime in?

Feb 21, 2007 5:18 am

I'll chime in that I believe the CFA is harder than the CPA, although I have no firsthand knowledge of the CFA.

The bar exam harder than the CPA exam?  No way...I don't believe that one for a minute. Again, I haven't taken the bar exam, so I'm just going on observation and what others have told me.  I would say that pass rate would be indicative...the CPA exam had right at a 20% pass rate when I was chasing it.  I think the bar exam was considerably higher...I know the test was considerably shorter than 19.5 hours.

Feb 21, 2007 6:47 am

[quote=san fran broker]

From what I’ve been told by the CFA Institute leadership, the CFA is designed to be on par with the bar.

[/quote]



It’s a very hard exam , and therefore holding a CFA is very prestegious. There is also the CIC designation for CFA’s who are also RIA’s.



The CIMA (Certified Investment Management Analyst) is also very hard and prestegious, but that is more of a pension fund thing.
Feb 21, 2007 6:49 am

[quote=Indyone]

I’ll chime in that I believe the CFA is harder than the CPA, although I have no firsthand knowledge of the CFA.

[/quote]



One thing that is interesting is that the AICPA hasn’t done much to
promote the PFS designation that CPA’s can hold. Given the rigorious
education + exam, and cultural conservatism of CPA’s you would expect
them to be very good at investments/personal financial planning.
Feb 21, 2007 4:46 pm

On the CPA front, does anyone have experience on addind CPAs or accountants as solicitors for an RIA?

I have 2 accounting firms that don't want to manage investments, but would like to gain from their referrals. I'm interested in setting them up as solicitors of my RIA and pay them a % of my fees. Hopefully encourage referrals and make the relationships sticky.

Any comments are appreciated!

Feb 21, 2007 5:13 pm

[quote=EDJ to RIA]

On the CPA front, does anyone have experience on addind CPAs or accountants as solicitors for an RIA?

I have 2 accounting firms that don't want to manage investments, but would like to gain from their referrals. I'm interested in setting them up as solicitors of my RIA and pay them a % of my fees. Hopefully encourage referrals and make the relationships sticky.

Any comments are appreciated!

[/quote]

A local RIA in my town does this exact thing, I briefly discussed it with one of the partners.  Sorry I don't have much information on the details.  I'll watch what others respond as I hope to do the same thing eventually. 

Feb 21, 2007 11:56 pm

[quote=AllREIT] [quote=san fran broker]

From what I've been told by the CFA Institute leadership, the CFA is designed to be on par with the bar.

[/quote]

It's a very hard exam , and therefore holding a CFA is very prestegious. There is also the CIC designation for CFA's who are also RIA's.

The CIMA (Certified Investment Management Analyst) is also very hard and prestegious, but that is more of a pension fund thing.
[/quote]

I think that you are very misinformed. I am not "bashing" the designation per se, but I would say that it isn't in the same league as the CFA, or the CFP for that matter.

I have many colleagues with the CIMA designations and the handful with both a CFA and a CIMA found the latter to be exceedingly easy. It is essentially the designation for mutual fund / separate account users and alternative investment sellers that do not have the time to get the CFP.

I researched it a few years ago and, as I understand it, the designation requires passing an open book test, taking a week long course and then taking another closed book test with an average pass rate of 70%. No complex math or economics is involved. There is continuing education, however.

The CIMA is exclusively held by retail advisors. One of the reasons why it has been so widely adopted are its relatively easy requirements to get and the fact that brokerage firms have not generally tolerated substantial distractions - like professional designations, that take up significant amounts of time that could be spent cold calling. Yes, there are retail advisors that run "institutional" money, but this is essentially on the low end of "institutional" marketplace (small colleges, local charities, small company pensions, etc). It would be safe to say that the CIMA carries absolutely no weight in the pension fund world (which is the top end of the institutional marketplace). The expectation in that realm would be to have a CFA and an MBA from a name school.

I once asked one the retail advisors that I knew who held the CFA, the CFP and the CIMA why he had the CIMA (a Wharton MBA, too). His answer was that he felt that it was common enough to make sense to put on his card, given that some clients would see it on other advisors' cards and "not understand" and that he used the actual CIMA class as an opportunity to visit with some friends who now taught at Penn.

This is not to say that getting the CIMA is not a good thing, but not all designations are created equal... and the CIMA is lesser than most investment and financial planning credentials. The CIMA should not be considered a core designation, but rather a supplement to the CFA or CFP...

Now, flame on...

Feb 22, 2007 1:59 am

At this point, I just want the initials behind my name so I can market myself better.  Studying the material has definitely made me a better advisor and more knowledgeable about the portfolio construction.

Your 2nd sentence makes a lot of sense.   However, you are kidding yourself if you think that the letters will make much of a marketing difference.  Keep in mind that the same people who are telling people to look for a CFP are the same people telling people that they don't need a financial advisor.  "Just buy index funds and term insurance."

Feb 22, 2007 7:32 am

[quote=san fran broker][quote=AllREIT] [quote=san fran broker]

From what I've been told by the CFA Institute leadership, the CFA is designed to be on par with the bar.

[/quote]

It's a very hard exam , and therefore holding a CFA is very prestegious. There is also the CIC designation for CFA's who are also RIA's.

The CIMA (Certified Investment Management Analyst) is also very hard and prestegious, but that is more of a pension fund thing.
[/quote]

I think that you are very misinformed. I am not "bashing" the designation per se, but I would say that it isn't in the same league as the CFA, or the CFP for that matter.

I have many colleagues with the CIMA designations and the handful with both a CFA and a CIMA found the latter to be exceedingly easy. It is essentially the designation for mutual fund / separate account users and alternative investment sellers that do not have the time to get the CFP.

I researched it a few years ago and, as I understand it, the designation requires passing an open book test, taking a week long course and then taking another closed book test with an average pass rate of 70%. No complex math or economics is involved. There is continuing education, however.

The CIMA is exclusively held by retail advisors. One of the reasons why it has been so widely adopted are its relatively easy requirements to get and the fact that brokerage firms have not generally tolerated substantial distractions - like professional designations, that take up significant amounts of time that could be spent cold calling. Yes, there are retail advisors that run "institutional" money, but this is essentially on the low end of "institutional" marketplace (small colleges, local charities, small company pensions, etc). It would be safe to say that the CIMA carries absolutely no weight in the pension fund world (which is the top end of the institutional marketplace). The expectation in that realm would be to have a CFA and an MBA from a name school.

I once asked one the retail advisors that I knew who held the CFA, the CFP and the CIMA why he had the CIMA (a Wharton MBA, too). His answer was that he felt that it was common enough to make sense to put on his card, given that some clients would see it on other advisors' cards and "not understand" and that he used the actual CIMA class as an opportunity to visit with some friends who now taught at Penn.

This is not to say that getting the CIMA is not a good thing, but not all designations are created equal... and the CIMA is lesser than most investment and financial planning credentials. The CIMA should not be considered a core designation, but rather a supplement to the CFA or CFP...

Now, flame on...

[/quote]

Good.  In my time I have done a CFP and CFA...the CFA 3x harder thann the CFP.  The level 2 was hell, level 1 and 3 easier.  (San Fran can chime in here). 

All education is good, and all basihing of such should be viewed as counter -producive.


Feb 22, 2007 4:29 pm

I have both as well.  Level 2 separates the men from the boys.  Level 1 and 3 also require more dedication than I can convey here. 

Take the exam if you REALLY have the time/dedication b/c passing 1 or 2 levels means nothing and it will take significant time away from your family.  Taking it before you have a family is optimal.

Your thoughts on the CIMA are right on...

Mar 11, 2007 8:09 pm

I am studying for the CFP right now. Definitely not a cakewalk. If I pass, I will definitely like to use it to my advantage in conversation.

CFP's out there, Any tips on what to say?