Difference Between CIPM and Claritas
CIPM deals primarily with Investment Performance Analysis and presentation. However, Claritas is all about a broad introduction to finance. CIPM is meant for people looking for specializing within a finance domain; however, Claritas suits those from a non-finance background.
What is CIPM?
Certificate in Investment Performance Measurement (CIPM) is offered by CFA Institute as a specialized credential focused on performance evaluation and presentation of relevant data to investors. There has been a growing demand for financial institutions to adhere to the Global Investment Performance Standards (GIPS) and CIPM helps achieve this goal by helping professionals understand these global ethics and professional standards. It is a globally recognized accreditation that can help enhance the career prospects of investment professionals.
What is Claritas?
Claritas Investment Certificate is an entry-level designation awarded by the CFA Institute to help professionals become acquainted with the fundamentals of the investment industry. It also introduces participants to the roles and responsibilities of those working in different areas of the financial services sector. This covers many finance and investment-related roles and is the best fit for entry-level professionals in investment and finance.
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CIPM vs. Claritas Infographics
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CIPM vs. Claritas Summary
|Certification Organised By||CIPM is organized by CFA Institute||Claritas is organized by CFA Institute|
|Number of Levels||The CIPM exam has two levels: CIPM Principles exam and CIPM Expert exam||Claritas has seven modules. They all are Industry Overview, Ethics and Regulation, Inputs and tools, Investment Instruments, Industry Structure, Serving Client Needs, and Industry Controls respectively.|
|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)
|As we mentioned earlier, to pass Claritas exam, you just need to sit for 2 hours and answer 120 multiple choice questions. And you’re done. But don’t go by just its examination. If you don’t prepare well, chances are that you need to re-enrol yourself for the examination.|
|Exam Window||CIPM Exam Dates 2017:|
March 2017: 16 Mar – 31 Mar
September 2017: 16 Sep – 30 Sep
|Giving exam for Claritas is super easy. You can choose to sit for exam anytime within 6 months from the date of registration.|
|Subjects||1. Performance Measurement |
2. Performance Attribution
3. Performance Appraisal and manager selection
4. Ethical standards
5. Performance Presentation and GIPS standards.
|Claritas content curriculum is divided into 7 modules including:
1. Overview of Investment Industry
2. Ethics and Regulation
3. Tools and Inputs
4. Investment Instruments
5. Industry Structure
6. Industry Controls
7. Serving Client Needs
|Pass percentage||September 2016 exam results:|
Principles exam results:- pass rate: 42%
Expert exam results:- pass rate: 52%
|The pass percentage is quite high in Claritas. The pass percentage till now is 85%. Almost 6,480 students have already passed out after completing their Claritas program.|
|Fees||The first time registration fee for CIPM Principles Exam and CIPM Expert Exam is $975 and if registering again for any of them, it is $500.||Individual registration costs US$685, and includes access to all study materials, the exam registration fee, and one exam sitting. But if you pay the fees in group, you may get some discount (around US $50).|
|What you get on completion of certificate exam||CIPM designation is awarded only on completion of both the exams along with 2 years of work experience in a performance-related role or 4 years of work experience in an investment management role. This work experience qualifies a person to apply for CIPM membership, which is a prerequisite to earn CIPM designation.||Claritas Investment Certificate on passing the exam|
|Job opportunities/job titles||Earning CIPM designation opens up a number of opportunities for professionals in a number of finance-related areas because of the fact that although investment performance analysis and presentation is a highly specialized area but it touches almost every field of finance. Some of the potential employers could include: |
1. Investment banks
2. investment management
3. research firms
4. GIPS verification firms
5. plan sponsors
6. performance measurement
|The job opportunities for Claritas are noteworthy as it’s one of the best investment courses in the world, recognized by the top-notch CFA Institute. If you want to shift your career from any other domains to finance/investment domain, this is very good course. It’s best suited for entry level professionals into investment domain and also for professionals who are already in the investment field.|
CIPM Entry Requirements:
There are no specific exam requirements for CIPM, and the only prerequisite is that one should abide by the CIPM Association Code of Ethics and Standards of Professional Conduct. This is achieved by every participant signing a Candidate Professional Conduct Statement as part of the exam registration.
Claritas Entry Requirements:
There are no specific entry requirements for Claritas, either in terms of educational qualifications or work experience. Anyone interested in gaining a fundamental knowledge of the investment industry is free to join the certificate program.
Why Pursue CIPM?
CIPM equips professionals with a broad-based understanding of complex concepts related to performance measurement, attribution, and appraisal, which play a key role in the highly specialized field of portfolio management. Participants are also exposed to requisite ethical and professional standards necessary to function in the global investment industry. This certification not only validates the capabilities of professionals in investment performance evaluation and related areas but also creates greater trust in employers by introducing them to global ethical practices in the field.
Why Pursue Claritas?
This entry-level certification is highly useful for finance and non-finance professionals interested in exploring work opportunities in the investment industry. There are no eligibility requirements, which makes it possible for almost anyone to earn the certification and can be of great value for IT, HR, sales, marketing, and other professionals roles within the investment industry who need a basic understanding of how the investment industry works. Getting certified from the CFA Institute is another advantage that enhances their career prospects in the investment industry.
CIPM deals with a rather complex area of finance, investment performance analysis, and presentation, which is not meant for everyone interested in finance in general. It is intended for professionals looking to specialize in this area and explore work opportunities to apply the knowledge and skills acquired. On the other hand, Claritas is an easier fundamental-level certification that offers a broad introduction to finance and does not hold as much value in terms of a professional credential as CIPM.
It is a good choice for people working in non-finance roles in the investment industry, though. CIPM can truly help enhance growth prospects for dedicated finance professionals in the global industry. Both are offered by the CFA Institute, known for its quality education, which alone brings credibility to both of these credentials.
This has been a guide to CIPM vs. Claritas. Here we compare the job options, fees, pass percentage, focus areas for CIPM, and Claritas Certification Exam. You may also look at the following articles for more information –