Six Popular and In-Demand Financial Certifications 2022

Six Popular and In-Demand Financial Certifications 2022

The World Economic Forum’s “Future of Jobs Report”, 2020, proposes prioritizing cloud technology, data science, and e-commerce in response to the COVID-19 pandemic. Nearly 40% of employees are required to reskill for six months, with a staggering 94% of employers expecting their staff to master new skills and modern technology.

While the talent gap is projected to expand as in-demand skills transition, financial management and mitigating the risks that come with it are critical. Financial certifications demonstrate expertise in a certain sector of the financial industry. When looking for a financial consultant to employ, you’ll notice that each financial practitioner’s name is preceded by a series of initials. There are a variety of designations available, including CFA, FRM, CFP, and others. This acronym stands for a variety of financial certificates.

Certified Public Accountant (CPA):

A Certified Public Accountant is one of the most well-recognized certificates for financial management. A certified public accountant’s (CPA) credential confirms an accountant’s understanding of taxation, auditing, regulatory compliance, and financial statement analysis. Obtaining a CPA license can help accountants increase their career opportunities, job security, and earning possibilities.

The American Institute of Certified Public Accountants (AICPA) awards the designation of Certified Public Accountant (CPA) to those who have demonstrated competence in the field of accounting (AICPA). To obtain a CPA license, the candidate must complete 150 hours of CPA coursework throughout a semester. Passing a section of the CPA Exam requires a minimum score of 75.

Certified Financial Planner (CFP):

Individuals interested in pursuing financial planning as a career can take a professional certification course offered by the Financial Planning Standards Board (FPSB). It entails evaluating the customer’s financial status, developing a financial strategy for the client, and implementing the strategy to the client’s benefit.

Candidates must have completed class 12th and passed five exams covering all six modules of the certification program to be certified as a CFP by the FPSB, and for Challenge Status Pathway candidates must have finished Chartered Accountant or Intermediate level, Chartered Financial Analyst, ICWA, Company Secretary, and more to be certified as a CFP by the FPSB. The eligible list is available on the official examination website.

Chartered Investment Counselor (CIC):

This is a certification that CFA provides to those who are currently registered investment advisors can pursue through the Investment Counsel Association. The CIC curriculum focuses on investment and portfolio management, as well as counseling. Individuals with the CIC charter are typically prominent stakeholders in the financial industry, such as those in charge of huge accounts and mutual funds.

To be eligible for the CIC designation, a candidate must work for a member firm of the Investment Adviser Association and have at least five years of experience. Moral and professional references are also required, as well as the ability to function as a custodian.

Financial Risk Manager (FRM):

Financial risk management is critical regardless of the type of business or its size. The Financial Risk Manager (FRM) certification is offered by the Global Association of Risk Professionals (GARP), and it confirms that a person’s knowledge of risk management concepts has been validated by international professional standards.

Financial risk management, in its broadest meaning, is the active action of minimizing and managing overall risk through various financial procedures to protect a business’s financial worth.

To achieve the FRM certificate, candidates must pass a two-part comprehensive test and have two years of financial risk management work experience.

Chartered Financial Consultant (ChFC):

The American College of Financial Services offers the Chartered Financial Consultant (ChFC) designation. A ChFC is essentially a more sophisticated version of the CFP (Certified Financial Planner) designation. A chartered financial consultant provides complete financial planning, including investment and budgeting, retirement accounts, savings, and tax planning.

ChFC requires the completion and passing of a total of eight courses covering all aspects of financial planning by a candidate. They must also have worked full-time in a relevant profession for three of the previous five years. One year of business experience is equivalent to an undergraduate or graduate degree from an authorized university.

Chartered Alternative Investment Analyst (CAIA):

The CAIA is a professional association for those who manage and regulate alternative investments such as hedge funds and real estate. The CAIA Association’s charter program takes around a year to complete and involves coursework and tests. After passing two exams and becoming a member of the CAIA Association, you join an elite community of over 11,000 professionals worldwide.

Candidates who pass the Level 1 and 2 tests are eligible to join the CAIA Association as associate members. You must pass the exam and have a bachelor’s degree or four years of relevant experience to become a Charter member.