CIPM vs CFP

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 about choosing between CIPMCIPMThe CFA CIPM® program is known around the world for its investment professionals' performance evaluation and presentation expertise. The CFA CIPM Principles Exam and the CIPM® Expert Exam are two challenging exams to be cleared.read more 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.

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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 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 you all the required information about 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 the 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.

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CIPM vs. CFP Summary

SectionCIPM CFP
Organizing BodyThe organizing body for the CIPM exams is the CFA Institute, USA. The organizing body for the CFP exams is the Certified Financial Planner Board (CFP Board) of Standards Inc., USA.
PatternThe course has 2 sequential levels – Level I and Level II, which replaced Principles level and Expert level respectively. The CFA charterholders don’t need to appear for the Level I exam. The CFP course has only one level.
Duration of CourseThe candidates usually take around 18 months to complete the course and become CIPM qualified. The candidates usually take around 3 years to complete the course and become CFP qualified.
SyllabusThe course focuses on the following topics

 

  • Ethics and Professionalism
  • Performance Attribution
  • Performance Measurement
  • Performance Presentation
  • Performance Appraisal
  • Manager Selection
  • Global Investment Performance Standards
 The syllabus of the course covers the following topics

 

  • General Principles of Financial Planning
  • Investment Planning
  • Estate Planning
  • Retirement Savings & Income Planning
  • Education Planning
  • Tax Planning
  • Risk Management & Insurance Planning
  • Professional Conduct & Regulation
Exam feesThe total cost of the course primarily consists of the exam fees, which vary between $950 to $1,350 depending on the time of registration. The total cost of the course varies depending on the time of registration, such that early, standard and late registration costs $825, $925, and $1,025 respectively.
JobsSome of the common profiles include

 

  • Risk Analyst
  • Compliance Officer
  • Investment Consultant
  • Portfolio Manager
  • Investment Analyst
  • Financial Adviser
 Some of the common profiles include

 

  • Tax Consultant
  • Estate Planner
  • Legal Financial Manager
  • Retirement Planner
  • Investment Planner
  • Risk, Manager
DifficultyThe CIPM exams are very difficult and only ~25% of the aspiring candidates clear both levels. In September 2019, the pass rates were

 

 The CFP exams are moderately difficult as indicated by the historical pass rate of more than 60%. During 2019, the pass rates were

 

  • Overall: 62%
  • First-timers: 66% [Source: CFP]
Exam DateThe schedule for the upcoming exams for the year 2021 for Level I and Level II is as follows

 

  • Level I: Mar 16-31 & Sep 16-30
  • Level II: Mar 16-31 & Sep 16-30
 The schedule for the upcoming exams for the year 2021 is as follows

 

  • Mar 09-16, Jul 06-13 & Nov 02-09.

 

Exam Requirements

CIPM

Like you know, to have yourself eligible for a professional course, you need to meet their educational and other requirements. The 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 the below-given scenarios.

  1. You must have experience of two or more years in displaying investment results, calculations, analyzing, evaluating different investments if you have had experience in giving legal, regulatory, and consulting services in this industry if you have had 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.
  2. If you do not have experience in the above its or you can also are eligible if you have four years of experience in domains such as applying and evaluating finances of companies, evaluating data that is economical 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.

CFP 

Let us tell you that the CFP requirements vary from place to place now. For example, the USA has multiple criteria before applying for this course. The most important one has the highest bachelor’s degree, which is equivalent to 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.

  1. A bachelor’s degree needs to be completed within five years of completing CFP.
  2. The student has to cover approximately 100 topics of financial planning before applying for CFP. This should cover major topics such as
  1. 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.

  1. As per the regulations and the law’s transparency is the key factor of this industry. And because
  2. 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.
  3. 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.
  4. Studying, evaluating, and producing reports will be your key jobs. This course will help you to generate reports that are comprehensive and transparent.
  5. 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.
  6. 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 wealthMaximize Their WealthWealth maximization means the maximization of the shareholder’s wealth as a result of an increase in share price thereby increasing the market capitalization of the company. The share price increase is a direct function of how competitive the company is, its positioning, growth strategy, and how it generates profits.read more.

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.

  1. You gain expertise in financial planning at the end of this course.
  2. You get an idea and a bird’s view of financial planning through insurance planning, investment planning, tax planningTax PlanningTax planning is the process of minimizing the tax liability by making the best use of all available deductions, allowances, rebates, thresholds, and so on as permitted by income tax laws and rules imposed by a country's government. It contributes to better cash flow and liquidity management for taxpayers, as well as better retirement plans and investment opportunities.read more, estate planning, and retirement planning.
  3. This course enhances and empowers your career in financeCareer In FinanceA appropriate degree, such as a B. Com, CPA, or MBA, is required to pursue a career in finance. Then one can choose from a variety of financial careers such as equity analyst, investment banking, asset management, risk management, corporate finance, and so on.read more and financial planning. After you complete this course, you will be recognized professionally in not just one country but 23 countries globally.
  4. This certification is rated as a gold standardA Gold StandardThe gold standard was a monetary term used when gold exchange was used instead of paper currency.read more by the famous Wall Street Journal.
  5. Forty-eight 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.

Conclusion

If you have the passion of knowing the financial marketFinancial MarketThe term "financial market" refers to the marketplace where activities such as the creation and trading of various financial assets such as bonds, stocks, commodities, currencies, and derivatives take place. It provides a platform for sellers and buyers to interact and trade at a price determined by market forces.read more, 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 with exam requirements, job options, fees, and pass percentage. You may also have a look at the following articles –

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Comments

  1. Roman Rhodes says

    Thanks for sharing such a wonderful post on CIPM and CFP.

  2. Damien Stowers says

    Very Insightful. Thanks for sharing this post. It was quite useful to me. I just wanted to know all about CFP Exam. As you have not mentioned about CFP Exam registration process and how much is the registration fee for this EXAM. Would please throw some light on this?

    • Dheeraj Vaidya says

      Thanks Damien! You can read this CFP Exam here I have mentioned all the details concerning Exam format, registration process, eligibility criteria, fees, pass percentage and many more

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