Difference Between CFA and CIPM
CFA is a professional course offered by the CFA Institute and candidates seeking to pursue this course will need to qualify exams that are conducted by the institute in areas concerning accountancy, economics, money management, and security analysis whereas, CIPM is a professional course offered by the CFA Institute and the candidates seeking to pursue this course will need to qualify exams that are conducted by the institute in subjects like performance attribution, performance measurement, ethical standards, etc.
Certificate courses like the CIPM exam, CFA® exam, and CRM exam are invaluable modes to perfect the art of learning and explaining the complicated world of finance and its core strategies very quickly to the investors. CFA® institute has designed two programs to meet these needs of the finance professionals, and they are CFA® (Chartered Financial Analyst) and CIPM (Certificate in Investment Performance Measurement).
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The article is articulated in this order:
- What is the Chartered Financial Analyst (CFA) charter?
- What is the Certificate in Investment Performance Measurement (CIPM)?
- Infographics
- Exam Requirements
- Why pursue CFA?
- Why pursue CIPM?
What is the Chartered Financial Analyst (CFA) charter?
The CFA® Program focuses on investment management. The top employers of shareholders include the most respected financial corporations globally, e.g., JPMorgan, Citigroup, Bank of America, Credit Suisse, Deutsche Bank, HSBC, UBS, and Wells Fargo, to name a few. Many of these are investment banks, but the CFA® Program focuses on the knowledge and skills most relevant to the global investment management profession from the standpoint of a practitioner.
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Investment professionals who hold the CFA®designation (or CFA® charter) meet rigorous educational, work experience, and ethical conduct requirements.
Only those who complete three graduate-level examinations, four years of work experience, and annual membership renewal (including ethics and code of professional conduct attestation) are permitted to use the CFA® designation. Complementary codes and standards (such as the Global Investment Performance Standards and Asset Manager Code) help enhance this professional distinction.
What is the Certificate in Investment Performance Measurement (CIPM)?
The CIPM program is globally recognized for its performance evaluation and presentation expertise of investment professionals. The CIPM certificate is an incredible way to gain a perspective and a firm footing in the financial markets of the world. It guides the professionals through a set code of ethics and instills in them the value of pursuing excellence in the field with an unmatched passion.
CIPM certificate module is designed to provide extensive in-depth knowledge and practical skills of Project Management tools and techniques. The course allows the professional to be more competent, productive, and result oriented in all the aspects of executing and handling their knowledge of both hard and soft skills. They are trained to appreciate the finer nuances of Time and Cost while meeting Quality to plan out control risks effectively while addressing people issues like communication, teamwork, motivation, and information management.
CFA vs. CIPM Infographics
Exam Requirements
| CFA® | CPIM | |
| To qualify for the CFA® program, a candidate must have a bachelor’s (or equivalent) degree or be in the final year of his bachelor’s degree program (an update is required on attaining the degree to qualify for the Level II) or a minimum of four years of professional experience. The CFA® certificate is only awarded after a candidate attains four years of experience even after clearing the exam. | There is no specific exam requirement for the CPIM course. The only prerequisite that a candidate needs to meet is that they must agree to abide by the CIPM Association Code of Ethics and Standards of Professional Conduct. This is done by signing a Candidate Professional Conduct Statement as part of each exam registration. This is done to ensure that the high standards of the CIPM exam are protected, and the integrity of the designation is maintained. The CIPM designation is awarded after a candidate successfully clears the two exams: the CIPM Principles Exam and the CIPM Expert Exam. |
CFA vs CIPM Comparative Table
| Section | CFA | CIPM |
|---|---|---|
| Certification Organised By | CFA Institute | CFA Institute Certificate in Investment Performance Measurement (CIPM) |
| Exam/Window | CFA Level I exam is held in the month of June and December every year. Level II and Level III is held in the month of June every year. | There are two difficult exams to be cleared the CIPM Principles Exam and the CIPM Expert Exam. The exams are held twice in a year. One exam window is in the spring, and the other is in the fall, so it is possible to complete the program in one year. |
| Subjects | Ethical and Professional Standards Quantitative Methods Economics Financial Reporting and Analysis | Performance Measurement Performance Attribution Performance Appraisal and manager selection Ethical standards Performance Presentation and GIPS standards. |
| Pass percentage | To clear CFA 2015 you need CFA Level 1 42%, CFA level 2 46% and for CFA level 3 53%. CFA 2016 you need CFA Level 1 43%, CFA level 2 46% and for CFA level 3 54%. | CIPM Exam Results. September 2016 exam results Principles exam results pass rate: 42% Expert exam results pass rate: 52% |
| Fees | CFA fee is approximately $650 - $1380 including registration and examination. | First-time candidate early registration US$575 1 April – 31 May First-time candidate standard registration US$975 1 June – 31 July Returning candidate registration US$500 1 April – 31 July |
| Job opportunities | Investment banking, portfolio management and equity research | Investment banks, investment management and research firms, GIPS verification firms, plan sponsors, and performance measurement software development companies. |
Key Differences
- CFA is the short form used for Chartered Financial Analyst. CIPM is the short form used for Certificate in Investment Performance Measurement.
- The CFA Institute organizes CFA. CIMA is organized by CFA Institute as well as CIPM Institute.
- An aspirant will need to appear and qualify for three levels of exams conducted by the CFA Institute. The three levels of exams are Level 1, Level 2, and Level 3. In the case of an aspirant who is willing to pursue a CIPM degree, they will need to appear and qualify for two levels of exams conducted by the CFA and CIPM Institute. The two groups of exams are CIPM Principles Exam as well as the CIPM Expert Exam.
- The subjects in the CFA course are Investment tools, asset valuation, ethical and professional standards, and portfolio management and wealth planning. The subjects in the CIFM course are Performance attribution, performance measurement, ethical standards, performance appraisal and manager selection, and performance presentation and GIPS standards.
- A CFA can apply for the job titles of research analyst, consultant, portfolio manager, chief executive, risk manager, relationship manager, financial adviser, and corporate financial analyst. A CIPM can apply for job opportunities in an investment bank, GIPS verification companies, investment management, research companies, and performance measurement software development companies or can even use for job titles of plan sponsors, performance measurement, etc.
- CFA exams are not as tricky as CIPM exams.
- An aspirant can complete his or her CIPM exams in a year provided if they qualify both the levels in one go. Both the CIPM Principles Exam, as well as the CIPM Expert Exam, is conducted twice every year. These exams are shown in the spring as well as autumn season. So, an aspirant can readily appear for the last level of the exam (CIPM Expert Exam) as soon as he or she has qualified the first level (CIPM Principles Exam) without needing to wait for a certain period. In the case of the CFA exam, an aspirant doesn’t get the leverage to appear and qualify the course in a single year since there are levels for this course and the exams for each of them are not conducted in the same year.
Why pursue the CFA Designation?
The differentiating benefits of earning the CFA® designation include:
- Real-world expertise
- Career recognition
- Ethical grounding
- Global community
- Employer demand
The sheer demand for the CFA® charter speaks to the difference it makes. More than 160,000 CFA® exam registrations were processed for the June 2015 exams (35% in the Americas, 22% in Europe, Middle East, and Africa, and 43% in the Asia Pacific).
For more information, refer to- CFA® Programs.
Why pursue CIPM?
CIPM is an intensely focused course with a rigorous study material that concentrates on broad topics like performance measurement, attribution, and appraisal. It is a specialized area with the domain of portfolio management at is the core, allowing you to gain skills that show your mastery in the field of finance through the acquisition of some invaluable set of skills in the certificate program.
These skills come in handy and are valued by employers and clients, increasing the confidence in your ability to bring new investment strategies to the table with certified good results. The program is an invaluable learning experience if your job requires the utilization of these kinds of skills.
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