CIMA vs CFP

CIMA stands for Chartered Institute of Management Accountants, and this course emphasizes business ethics, asset allocation, investment policy, performance assessment, and risk analysis. In contrast, CFP stands for Certified Financial Planner, and this course focuses on offering strategic advice on various topics that fall under the purview of taxes and investment.

Choosing between CIMA (Certified Investment Management Analyst) and CFP (Certified Financial Planner) is a tough choice because both the options are equally good in their own right. They can help give your career the desired boost. However, the course must fit into your career ambition. So to help you choose the right course for your bright career aspirations, we analyze the courses in detail, highlighting the scope of both courses. Below is the structure of what we will understand in this post.

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Let’s understand the difference between these two streams with the help of CIMA vs. CFP Infographics.

CIMA is the most prestigious course when global business is taken into context. This course is offered by The Investment Management Consultants Association (IMCA). Being CIMA certified gives you the knowledge to undertake critical strategic decisions in any business. Those who want to reach the level of advanced investment consultants pursue CIMA. Their major role is to provide sound guidance to international investors. CIMA certification ensures that you have undergone three years of extensive practice as an Investment Consultant. The administering committee IMCA also keeps a close eye on the record of ethical conduct of the candidates appearing for CIMA. Continuing education of 40 hours must be obtained every two years to maintain the certificate.

The certification exam of Certified Financial Planner (CFP) is organized by the Certified Financial Planner Board of Students, Inc. This certification involves comprehensive studies of financial planning and covers a range of topics like stocks, bonds, taxes, insurance, retirement planning, and estate planning. Certified Financial Planners work closely with individuals to help them assess their financial decisions to achieve maximum profits. Educational qualifications required for CFP are a bachelor's degree from an accredited college or university and three years of experience as a full-time financial planner or equivalent part-time experience. This certification requires continuing education of thirty hours every two years.

To draw a comparison between both the courses, we must, first, understand the scope of both the courses. While CIMA focuses more on asset allocation, business ethics, risk analysis, investment policy, and performance assessment, the CFP course revolves around providing strategic advice on the topics that fall under tax and investments. Moreover, pursuing a CFP certification also opens the option of leading a career in various sectors, including banking, wealth management, advisory services, stockbroking, etc. Thus, for a more holistic approach towards a business career, CFP is the course that will help you achieve it.

CIMA is an important certificate considering today's clients demand sophisticated solutions for their business prospects to maximize profits. CIMA certification is organized by IMCA, which is all about business ethics; hence, CIMA ensures that you have undergone a strict ethical code of conduct. If found guilty, you will be handled by a professional review committee of peers. CIMA certification enhances your professional stature and opens up the opportunity to work with imminent clients, and depicts that you are committed to increasing your knowledge by studying further.

There is an adverse need for quality financial planners in today’s world. Being a CFP broadens your thinking skills and helps you achieve your clients' financial goals in a better way. Becoming a CFP can make your financial planning career grow exponentially. According to a survey, CFP Professionals are 26 percent more in compensation than other financial advisors. CFP certification creates a positive impact on clients and strengthens their trust, and they are relying more on your technical abilities. Along with increased financial prospects, one also experiences satisfaction in their career.

To obtain a CIMA certificate, one has to clear the qualification examination, and certification examination conducted online and are proctored. Qualification exams can be taken at any qualified testing center, and you have to clear this exam in one go; otherwise, you’ll have to wait for another 30 days to pay the retake fee. After clearing the qualification examination, you have to register for a registered education component, and then you are eligible to appear for the certification examination. A certificate examination for CIMA is a four-hour exam that AMP testing centers host. Subjects covered under this certification are Fundamentals of management accounting, fundamentals of financial accounting, fundamentals of business mathematics, fundamentals of business economics and fundamentals of ethics, corporate governance, and business law.

For CFP certification, you have to complete a CFP Board registered program. The CFP certification exam is administered in computer-based testing (CBT) during a 5-day testing window each year, with one testing window available each March, July, and November. The exam comprises 170 multiple choice questions, including scenario-based questions and standalone questions. The exam comprises two three-hour sessions separated by a scheduled 40 minutes break. Major domains that are covered under CFP examination are establishing and defining the client-partner relationship, gathering information necessary for fulfilling engagement, analyzing and evaluating the client’s current financial status, developing the recommendations, communicating the recommendations., implementing the recommendations, monitoring the recommendations, and practicing within professional and regulatory standards.

Both courses have individual benefits and scope in the business industry and can pursue prospering career options. If you don’t want to limit yourself to a few finance-related sectors, you should go for CFP. On the other hand, if you want to specialize in investment policy and asset allocation, you should pursue the CIMA certification.

This has been a guide to CIMA vs. CFP. Here we discuss the differences between CIMA and CFP, infographics, and a comparative table. You may also have a look at the following articles –

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