CIMA vs CPWA

CIMA is the abbreviation for the Chartered Institute of Management Accountants. The candidate can clear the course by qualifying the three levels (operational level, management level, and strategic level). In contrast, CPWA is the abbreviation for Certified Private Wealth Advisor. This course is a one-level certification exam.

Tired and searching for certifications that you think go well with personality? Need to know if CIMA qualification or CPWA exam exam can help? We must tell you that you are not the only candidate. Do not worry! This article will guide you on whether it should be CIMA or CPWA.

In this article, we will discuss the following –

CIMA stands for Chartered Institute of Management Accountants. It is a UK-based premier body dedicated to promoting industry-wide best practices and knowledge dissemination in management accountancy. The institute offers a comprehensive CIMA certification program to validate the skills and capabilities of professionals with varying levels of expertise. CIMA is a 4-tier certification program including:

1. CIMA Certification in Business Accounting
2. CIMA Diploma in Management Accounting
3. CIMA Advanced Diploma in Management Accounting
4. Member of Chartered Institute of Management Accountants

Initiating with an entry-level certification and culminating with an expert-level accreditation, this certification program is designed to accommodate the diverse learning needs of students and professionals working in management accountancy.

Certified Private Wealth Advisor (CPWA) Certification is specifically for wealth managers working with high-net-worth individuals, considering their specialized needs. This certification program aims to help financial planning professionals learn how to identify the unique challenges these high-net-worth individuals face and develop strategies directed at efficient tax management, maximizing growth, and discovering suitable avenues for investment.

Investments & Wealth Institute (IWI) offers this certification program to introduce relevant topics like behavioral finance, portfolio management, and risk management to financial planning professionals dealing with high-net-worth individuals.

CIMA

There are no specific requirements for the CIMA Certificate in Business Accounting. It is an entry-level certification for which little to no accounting knowledge is required. Instead, a good grasp of mathematics and English is required to qualify for this certification, along with an interest in accounting.

The professional-level qualifications offered by CIMA are divided into operational, management, and strategic level studies. To pursue CIMA Operational Level studies, professionals need a basic level of proficiency in accounting or business studies. The candidate can meet this requirement if they hold any of these qualifications: -

• CIMA Certificate in Business Accounting
• Master’s in Accounting or MBA
• Membership of ICWAI, ICMAP or ICMAB
• Membership in an IFAC body

Any relevant qualification to get an exemption from the CIMA Certificate in Business Accounting.

The candidate should have completed CIMA Operational Level studies and Operational Case studies to pursue Management Level studies.

To pursue Strategic Level studies, the candidate should have completed both operational and management level studies and their respective case studies.

CPWA

Professional prerequisites:

A candidate must hold a bachelor’s degree from an accredited college or university or have one of the following designations or licenses: -

• CIMA, CFA, CIMC, CFP, ChFC, or CPA license.
• A candidate must have five years of professional work experience in the financial services sector or serving high-net-worth clients.
• A professional record of ethical conduct, as IMCA’s admissions committee, cross-checked.

Educational prerequisites:

The candidates must complete a six-month pre-study education program culminating with five-day in-class learning at the University of Chicago Booth School of Business.

1. CIMA is organized and offered by the Chartered Institute of Management Accountants (CIMA). CPWA is managed and provided by the Investments & Wealth Institute (IWI).
2. The CIPMA course has three exam levels that an individual must appear and qualify to attain a CIMA degree. These levels are the strategic level, management level, and operational level. In the case of a CPWA degree, an aspirant is only required to qualify for one round of exams as the course is a single-level exam.
3. The CIMA course focuses on management accounting, organizational management, project and relationship management, advanced management accounting, management accounting, and financial reporting and taxation. In comparison, the CPWA course concentrates on subjects such as wealth management strategies, legacy planning, client specialization, and human dynamics.
4.  An applicant with a CIMA degree can apply for management accountant, internal audit manager, financial analyst, and finance manager. An applicant with a CPWA degree can apply for the job titles of private wealth managers and private wealth advisors.
5. Individuals interested in making a career in finance
6. can choose to pursue the CIMA certification course. In contrast, individuals interested in creating a career in wealth management can opt for the CPWA certificate course.
7. An applicant must have at least fundamental knowledge in accountancy and business studies to apply for the CIMA certification program. In addition, the applicant must qualify for any one of the degrees like membership of ICMAP/ ICWAI /ICMAB, Masters in Business Administration or MBA, Chartered Institute of Management Accountants certificate in BA (business accounting), and such other relevant qualifications.

An applicant willing to pursue the CPWA course must necessarily possess a bachelor’s degree (graduation degree) from a reputed university, a minimum of 5 years of professional experience in serving clients with a high net worth, at least one license in CIMA/CIMC/CFA/ChFC/ or CIPA.

An aspirant candidate studying management accountancy or professionally engaged in the field can benefit greatly from the CIMA certification program. Students can opt for CIMA Certificate in Business Accounting, a foundation-level accreditation aiming to help and become acquainted with the basics of management accounting and related areas. That will help gain a foothold in the industry and bring greater credibility in the view of prospective employers.

The next three levels of accreditation are for professionals at the beginner, middle and advanced stages of their learning curve and are designed to let them test their capabilities, work on improvement areas and earn more respect and credibility in the eyes of prospective employers. An increasing number of employers seek accredited professionals and are more comfortable entrusting them with positions of responsibility.

CPWA offers specialized knowledge of wealth management for professionals serving high-net-worth clients. Earning this credential can help them acquire the necessary knowledge and skills as high-net-worth individuals deal with numerous different sets of problems compared with any average investor.

Another reason is it adds credibility, as an increasing number of employers and clients tend to go with professionals who have higher credentials and work experience. This credential can add value to the profile of a wealth manager looking to optimize their skills to serve high-net-worth clients.

This article has been a guide to CIMA vs. CPWA. Here, we have discussed the differences between CIMA and CPWA and infographics and a comparative table. You may also have a look at the following articles: -

• CIMA vs. MBA - Differences
• ACCA vs. CIMA - Which is Better?
• CIMA vs. CMA - Differences
• CFA vs. CIMA - Key differences?
• Beginner - Guide to CPWA Certification Exam