Difference Between CIPM and CFP
Tricky is the word that describes the decision making phase of choosing the right career. Yes, my friend, we understand your confusion to choose between CIPM vs CFP and hence we have decided to make this a little simple for you. How? Take a look at the notes below to help yourself make the right decision between the two captioned courses.
What is CIPM?
International courses have their own value and recognition; however, if you want more than just recognition then this is the course as it will help you succeed as an investment performance analyst. This course can be best helpful for in performance measurement of attributes such as investment banking, investment analyses, investment management, and also advising or investments. This course is offered to global finance candidates from the CIPM Association that is the certified Investment Performance Measurement Association which is backed by the CFA Institute which is why this course has global recognition.
Let me give you a little history of this course, this will just give you an idea as to why was the course started. As you know that there have been continuous changes in this industry however in the early days these changes were not predicted and hence there were certain trends, regulations, and laws that decided how the financial products will be formed, and advertised. And the changes took place this is when the previous trends are now not encouraged especially by the US Security and Exchange Commission. The regulators and the Global Investment Management Industry has set a few standards that cover the calculations of returns and set standards of advertising that mandatory need to be adhered to, the investment industry has achieved continuous growth and this growth has been globally not simply for the USA or The global emerged economies.
What is CFP?
The global financial committee respects the CFP course considering it prestigious and internationally acceptable. This certification is a definite trust in gaining opportunities globally in any field of finance. You name the fields in the finance industry and you have an opportunity there.
Banking, investment banking, taxation, real estate, investments, insurances, they will all need you. This course gives you a satisfying career in financial services undoubtedly. There are over 100000 CFPs globally as this is the highest level of certification in the finance industry-respected genuinely by the industry, professionals and the consumer.
To become a CFP you need to make education or studying a very important part of your life. The entire course is based directly on the e’s and they are Education, Examination, Experience, and Ethics. The details will follow in the notes below. We have tried to give you or rather bring to you all the required information of the course.
However, this course also has a requirement of being in touch with the market continuously and hence continuous education is a very important part of this course. The motive behind continuous education is to display the candidate’s development in the financial planning field to public which includes clients, professionals around you including the entire industry.
CIPM vs CFP Infographics
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Let’s see the difference between CIPM vs CFP.
CIPM vs CFP Summary
|Certification Organized By||Certificate in Investment Performance Measurement is organized by the CIPM association which is a part of and is associated with the CFA Institute.||This certificate is organized by the CFP Board that is the Certified Financial Planner Board. This board is affiliated with the Financial Planning Standards Board also known as the FPSB which is the international owner of CFPB outside of the United States of America.|
|Number of Levels||CIPM has two levels that is, the CIPM Principle Exam and the CIPM Expert Exam. The details of both the examinations differ from each other.||This examination is a single level examination with a single 6 hours exam divided by a 30 minute brake.|
|Mode/duration of examination||CIPM Principles Exam: 3 Hours(100 multiple choice questions)|
CIPM Expert Exam: 3 Hours(80 item set questions,20 scenarios; each one followed by four multiple choice questions)
|CFP is a computer based test. This test has 170 questions that need to be solved within 6 hours divided by a 30 minute brake.|
|Exam Window||CIPM Exam Dates 2017:|
March 2017: 16 Mar – 31 Mar
September 2017: 16 Sep – 30 Sep
|Held thrice in a year in Mar. 14–21, 2017, July 11-18, 2017 and Nov. 7-14, 2017|
|Subjects||1. Performance Measurement |
2. Performance Attribution
3. Performance Appraisal and manager selection
4. Ethical standards
5. Performance Presentation and GIPS standards.
|1. Introduction to financial planning
2. Risk analysis and insurance planning
3. Retirement planning and employee benefits
4. Investment planning
5. Tax and estate planning
6. Advance Financial planning
|Pass Percentage||September 2016 exam results:|
Principles exam results:- pass rate: 42%
Expert exam results:- pass rate: 52%
|In 2016, the overall pass rate was 70 percent|
|Fees||Early registration fee: US$575‡ (The early registration period closed on 31 May.)|
First-time candidate registration fee: US$975‡
Returning candidate registration fee: US$500‡
|The standard registration fee for CFP is $695 however if you register 6 weeks before the registration deadline you get a waiver and your registration fees reduces to $595. And if you apply late or before the last 2 weeks of the registration deadline you fee increases to $795.|
|Job opportunities /job titles||Can make you a market expert as an analyst, risk manager, fund manager, professional advisor, investment banker, and much more||Completion of CFP can get you designation such as risk manager, financial planner, investment banker, professional, etc.|
Like you know to have yourself eligible for a professional course you need to meet their educational and other requirements. Requirements of CIPM is given below for you, these requirements will help you analyze your situation to make your decision.
You can judge yourself with the help of below-given scenarios.
- You must have an experience of two or more years in displaying investment results, calculations, analyzing, evaluating different investments if you have had an experience in giving legal, regulatory and consulting services in this industry if you have had an experience in technical and accounting that directly supports investment services, experience in GIPS standards compliance such as verification, if you have monitored people who deal in investments directly or indirectly or if you been into teaching investments.
- If you do not have an experience in the above its or you can are also eligible if you have a four years experience in domains such as applying and evaluating finances of companies, evaluating data that is economic and statistical data of some of the most important investment parts of the organization, marketing services of investment companies, keeping a watch on investment companies and their working to make sure that they adhere to the compliances and their standards, their regulations and also their laws, evaluating and recommending investment managers.
Let us tell you that the CFP requirements vary from place to place now, for example, USA has multiple criteria before applying for this course, the most important one has the highest bachelor’s degree which is equivalent in the same aspects and subjects. Whereas in Canada no formal university degree is important before registering for CFP and many CFP candidates there are not even graduates.
Well we will look at the list of USA CFP requirements
- A bachelor’s degree needs to be completed within 5 years of completing CFP.
- The student has to cover approximately 100 topics of financial planning before applying for CFP. This should cover major topics such as
- General principles of finance and financial planning.
- Planning insurances
- Planning of employee benefits
- State and federal planning of income tax
- Asset protection planning
- Individuals holding degrees and designations that are pre-approved by the CFP board can take the exam and education without having to complete the education requirement.
Why Pursue CIPM?
A course that benefits you in all aspects is going to your next plan of action. However, besides befits, you must also consider the part of interest before you chose between two professional courses. Your career needs to be full of successful steps and moves and this is exactly where and how you start. Choose a course that will not just be interesting for you but also add value to your career.
- As per the regulations and the law’s transparency is the key factor of this industry. And because
- CIPM course increases your contacts, your ability to improve your recruitment quality which will help you analyze and choose the right risk managers and analysts.
- With the help of this course, you will be able to deliver high returns by putting your investor’s money to work and minimize their risk by developing an insight that will be used for delivering more results that are actionable. You can acquire designations such as risk manager or an analyst.
- studying, evaluating and producing reports will be your key jobs this course will help you to generate reports that are comprehensive and transparent.
- Creating awareness of increasing risk will be a part of your course. You will not only create awareness here you will also calculate, measure and minimize risk for investors.
- If you have knowledge and experience you and your feedback will be highly valued. Your subordinates, colleagues, your firm and your clients all will value your viewpoints in order to help people maximize their wealth.
Why Pursue CFP?
Reasons for pursuing a course are never enough if you really, really want to do it; however, this course is really a good one and worth your time and effort.
- You gain expertise in financial planning at the end of this course.
- You get an idea and a bird’s view of financial planning through, insurance planning, investment planning, tax planning, estate planning, and retirement planning.
- This course enhances and empowers your career in finance and financial planning. After you complete this course you will be recognized professionally in not just one country but 23 countries globally.
- This certification is rated as a gold standard, by the famous Wall Street Journal.
- 48 organizations in the BFSI industry have supported recognized and promoted and preferred candidates who have cleared this course and hence this course has a very high demand in the finance market and industry.
Now that you know quite a bit about these courses we will help you with some specific and important information take a look below.
If you have the passion of knowing the financial market, for studying the market its volatility, the industries in the market, the financials of organizations then this is the CIPM course is for you. You have the knack of making money work then CIPM is the right course for you. Financial planning is a part of the service industry mostly. If you are really good at giving financial services then this is just the right job and course. However, CFP is rated as the best job in the USA a number of times by different organizations.
This has been a guide to CIPM vs CFP. Here we discuss the top differences between CIPM and CFP along exam requirement, job options, fees and pass percentage. You may also have a look at the following articles –