Ever wonder what the alphabet soup after the names of people who practice financial planning means?
CFP, PFP, CLU, etcetera: these certifications aren’t to make planners seem important; instead, they reflect hard-won levels of professionalism in specific areas of the finance industry that should, in turn, inspire consumer confidence.
Knowing what these certifications mean goes a long way in helping you decide what planner is best for you, whether your needs involve wealth management, insurance, or security during your senior years. Here’s a rundown of the key designations;
1. Certified Financial Planner (CFP)
Granted by the Financial Planning Standards Council, this internationally recognized designation demonstrates the knowledge and skills needed to build a financial plan. CFP holders have completed an FP Canada-approved Core Curriculum program, passed a national exam, and have at least three years work experience.
2. Chartered Investment Manager (CIM)
Chartered Investment Managers are qualified to manage portfolios for high-net-worth and institutional clients, be involved in advanced money management and investment strategies, and work as equity traders or mutual funds wholesalers. This designation is granted through the Canadian Securities Institute.
3. Personal Financial Planner (PFP)
The Personal Financial Planner designation means that the planner is qualified to help clients manage their wealth and maximize their assets thanks to a strong understanding of insurance, real estate management, and business income management. To achieve the designation, one must complete either the Canadian Securities Course or the Investment Funds in Canada course, followed by two required Personal Financial Planning courses and a final evaluation.
4. Chartered Life Underwriter (CLU)
The Chartered Life Underwriter is a professional financial advisor who specializes in developing solutions for individuals and business owners in the areas of income replacement, risk management, estate planning, and wealth transfer. Candidates interested in certification must complete a curriculum that includes subjects such as insurance planning, life insurance law, individual life insurance, and the fundamentals of estate planning. Completing these courses is the only stipulation to receiving CLU credentials.
5) Trust and Estate Practitioner (TEP)
Granted through the Society of Trust and Estate Practitioners, the TEP designation means the financial advisor has advanced understanding in the planning, creation and management of trusts and estates and that he/she takes a proactive approach to being at the forefront of the latest industry developments.
6) Family Enterprise Advisor (FEA)
This designation is considered a benchmark in family enterprise advising and designed to help professional advisors learn to integrate their own discipline with those of other professionals, so as to provide collaborative and complementary advice to business family clients. The program is offered in three Canadian cities in partnership with the Alberta School of Business, Ivey Business School, and Sauder School of Business.
7) Elder Planning Counselor (EPC)
This certification shows that the bearer has proficiency in financial planning, insurance, accounting, funeral planning, social work, nursing, and other fields related to clients over 55. It is obtained through the Canadian Initiative for Elder Planning Studies, and instruction covers aging and health issues, social and psychological issues, financial issues, and communication and other timely issues.
Hopefully this is a helpful guide for you when searching for a financial planner near you.
