You may want to improve your practice and the service you provide by adding a specialized qualification. Here’s how to choose the one that suits the needs of you and your clients

As an advisor with a thriving practice, you serve a roster of client families numbering in the hundreds, offering them financial planning, insurance products and investment advice. Presumably, you hold one of the major financial planning designations — certified financial planner or, perhaps, registered financial planner.

The next step in your career may be to improve your ability to serve the clients you already have or to add to your service offering in order to attract new clients. You may wish to become something of a specialist, catering to a niche market, offering services that attract clients with specific financial or lifestyle planning needs — high net-worth clients, for instance, or older clients.

There is no shortage of designations or education programs available to advisors who want to improve their ability to serve their clients. Some designations take years to attain and carry the prestige of a university degree. Others can be had for a couple of days of your time and a few hundred dollars. The question is: which one is right for you?

Advisors who want to work with high net-worth individuals or move into discretionary portfolio management should consider some of the technical financial specialties. Then there are the “lifestyle” skills, which, to many advisors, are at least as important as financial knowledge.

Deciding which self-improvement route to take begins with taking stock of your career and your business, says Linda Cartier, president of Financial Decisions Inc. in Sudbury, Ont., and regent of the Academy of Financial Divorce Specialists. “You have to do some self-searching and say, ‘What kind of practice do I have and where do I want my practice to go?’” she says.

An advisor who is interested in building portfolios might consider working toward a chartered financial analyst designation, she says. An advisor who is interested in working with seniors might choose one of the elder planning designations. Here is a sampling of some of the certifications available to financial advisors and what they require:



CERTIFIED FINANCIAL PLANNER
AND REGISTERED FINANCIAL PLANNER

The financial services industry generally regards the CFP designation as the professional benchmark for financial planning. Conferred by the Financial Planning Standards Council, a CFP indicates proficiency in the areas of financial planning, taxes, insurance, estate planning, retirement planning and other key issues. Training for the CFP is offered by a number of educational institutions across Canada. For a full listing, find “CFP candidates” on the FPSC Web site (www.ccfp-ca.org) and look under “earning the designation” for “education providers.”

You must pass an exam to attain the CFP.

The other widely accepted, although not widely held financial planning certification is the RFP, bestowed by the Institute of Advanced Financial Planning(www.iafp.-ca). The RFP is considered a senior planning designation. For starters, to qualify, advisors must have a CFP or an equivalent designation, have three years’ experience and submit a comprehensive financial plan. For a full list of requirements, go to “becoming a member” on the IAFP Web site and look for “qualifications checklist.”

Both the CFP and RFP designations adhere to high standards of professionalism, knowledge and ethics.



Once you have a planning designation, there is still plenty of opportunity for self-improvement.



CHARTERED LIFE UNDERWRITER

Holders of a chartered life underwriter designation are qualified to advise clients in matters concerning life insurance, taxes, estate planning and business succession. The benchmark qualification for life insurance advisors, the CLU is administered by the CLU Institute, an organization associated with Advocis.

The CLU program consists of seven courses: four that deal with financial planning, retirement planning and estate planning; and additional courses in taxation, law and applied estate planning. The full slate of courses costs $3,400 — $3,100 for Advocis members — and generally takes up to three years to complete. Advisors who already hold a CFP need take only three of those courses, for a cost of $1,700.

Meanwhile, CLU advisors who wish to add more investment and financial planning to their slate of services are encouraged to take steps to achieve their CFP. Up until the mid-1990s, such insurance advi-sors would have obtained a chartered financial consultant (CH.F.C.) designation through the CLU. As increasing numbers of advisors have opted for the CFP, the CH.F.C. program has been phased out, although the designation itself is still recognized.

@page_break@For more information: www.advocis.ca.



CHARTERED FINANCIAL ANALYST

Probably the most rigorous and respected of the investment-management designations, the CFA is considered by many to be the gold standard of financial analysis and portfolio management. Conferred by the CFA Institute (formerly the Association for Investment Management Research), an internationally recognized organization based in Charlotteville, Va., the CFA is recommended for advisors who want to build and manage portfolios for high net-worth clients and for professionals who want to work as stock analysts or portfolio managers at the institutional level. Most institutional money managers, such as mutual fund managers, are CFAs.

To get a CFA, you must first possess an undergraduate university degree (preferably, but not necessarily, in finance) and have four years’ work experience in the financial industry. “It should be work-related to being an investment analyst,” says Christina Cavanagh, executive director of the Toronto CFA Society. “At least 50% of your work has to be involved in some level of financial analysis, or support of that.”

There are three rigorous examinations that cover investment theory, financial accounting, ethics and portfolio management. Each exam, or level, requires 250 to 300 hours of study, according to Cavanagh, and most candidates take at least a year for each level.

“Believe me, this is not an easy test,” Rick Wayman wrote in www.investopedia.com. “I studied on average 19 to 20 hours each week from the end of December to the end of May. The concentrated study, however, was a better education than graduate school because of its total focus on investment management and practice.”

Study programs are available through private firms such as Stalla Inc. of Toronto and local CFA societies. The institute recommends purchasing its curriculum, which is available through its Web site (www.cfainstitute.org). Curriculum books are US$400 for each of the three levels.

“If you’re already in the industry and you have a bent and passion toward analysis and you’re numerate, then the self-study approach seems to work,” Cavanagh says.

For those who prefer the classroom, the Goodman Institute at the John Molson School of Business at Concordia University in Montreal offers fully integrated CFA courses in conjunction with its full-time MBA program (www.johnmolson.concordia.ca/giim). Ontario’s Wilfrid Laurier University (www.wlu.ca) offers a program in which part-time MBA students can complete the requirements for both an MBA and the CFA.

CFA exams have an unusually low pass rate. Of those who wrote the most recent Level I exam, 40% passed — up from 36% a year ago. Once a candidate has received the designation, there are no continuing education requirements, but members are encouraged to put in 20 hours of professional development every year.

It costs US$1,100 to write each of the three exams, followed by a US$225 annual fee.

“It’s a killer exam,” Cavanagh says. “Those that pass and make it through deserve it.”



CANADIAN INVESTMENT MANAGER

Advisors working with Investment Dealers Association of Canada firms who want to get a detailed insight into portfolio construction and qualify as discretionary money managers at the retail level may want to consider the CIM designation. According to the Toronto-basedCanadian Securities Institute, which confers the CIM, holders of the designation are qualified to become registered as discretionary portfolio managers, both for high net-worth individuals and institutional clients. The designation also qualifies IDA registrants to apply for licensing as associate or full portfolio managers.

The CIM designation requires the completion of three Web-based self-study training courses offered by the CSI: the Canadian securities course — regarded as the entry-level course for the investment industry ($800); investment management techniques ($650); and portfolio management techniques ($650). Each of the three courses generally takes one year to complete.

For more information: www.csi.ca.



CHARTERED ALTERNATIVE
INVESTMENT PLANNER

Advisors whose clients express an interest in hedge funds and other alternative investment products should consider the CHAIP course. The new designation was launched jointly by the Canadian Institute of Financial Planning (the education arm of the Canadian Institute of Financial Planners, the planning association related to the Investment Funds Institute of Canada) and Toronto publishing and educational firm Canadian Hedge Watch Inc. in June 2005.

According to Keith Costello, president of the CIFPs, the designation can be described as an “add-on” to the CFP.

“If a client is interested in these alternative products, it’s important that the advisor has the background to determine whether they fit into the client’s plan,” he says. “The advisors also has to know when these products are inappropriate for the client.”

The CHAIP course is designed to educate financial advisors on hedge funds, derivatives, income trusts, mortgage-backed securities, collectibles and precious metals.

The training course covers investment classes, modern portfolio theory, types of hedge funds, legal structures, taxation issues, risk and return measures, due diligence and best practices. While there are no prerequisites for taking the course, it is recommended only for experienced financial professionals.

“The course assumes you have a CFP or a CFA designation or some academic financial background,” says Chris Toye, senior manager of curriculum and training at the CIFP.

The CHAIP also requires a university degree and demonstrated practical work experience in investment advice, he says.

Once enrolled, students have one year to complete the course, and may take the examination, for which four sittings are scheduled each year.

“If you pass the exam, you submit your particulars to the board for peer review,” Toye says. “We are looking for two years’ experience, as well as the ethical considerations.”

The course and exam cost $350, followed by an annual renewal fee (yet to be determined but estimated at $75).

For more information: www.ifse.ca.



There’s a lot more to financial advice than numbers. Perhaps you want to improve your skills in retirement planning, or you want to meet the special needs of older clients or assist clients going through a divorce. While the courses for these lifestyle designations or certifications are less demanding than the major financial designations, many advisors insist they are useful in helping them meet clients’ needs.



CERTIFIED DIVORCE FINANCIAL ANALYST AND FINANCIAL DIVORCE SPECIALIST

Two designations are available to advisors who want to sharpen their ability to help clients going through divorces, and both cover a similar array of topics. The Michigan-based Institute for Divorce Financial Analysts offers the CDFA designation through seminars across Canada.

Subjects covered in the seminars include insurance and estate planning, taxes and the matrimonial home, child and spousal support, and alternative methods of dispute resolution. The course consists of two days of classes and a half-day exam, and costs $1,500. The CDFA has been around since 1993.

For more information: www.institute–dfa.-com.

More recently, Carol Ann Wilson, a financial planner in Boulder, Colo., developed the FDS designation to equip financial advisors with the knowledge to guide clients through divorce. Financial Decisions’ Cartier and her husband and business partner, John Lindsay, took the course in 1997. They found that the course was geared toward U.S. laws, and the Canadian market really needed its own version. So Cartier, along with Vancouver advisor Akeela Davis, developed a made-in-Canada FDS designation.

The program involves a two-day live course or three self-study units, followed by extensive reading and case-study work and a written examination. Only advisors with a financial planning designation, such as a CFP or RFP, can qualify for the designation.

The course covers such issues as the financial division of assets, child and spousal support, insurance and budgets.

“In a lot of cases, you’re helping people learn about finances because often one member of the couple hasn’t had a very strong financial background, while the other was the leader,” Cartier says.

The live course costs $1,749; the self-study program is $1,500. There is a $150 annual membership fee. There are 100 FDS holders in Canada.



As the Canadian population ages, many advisors find a growing proportion of their client roster is age 55 and over. Advisors can choose from two programs — the certified senior advisor designation or the elder planning counsellor — that demonstrate specialization in serving the needs of the elderly.



CERTIFIED SENIOR ADVISOR

The CSA was first introduced in the U.S. in 1997 by the Denver-based Society of Certified Senior Advisors. It is a standardized program that is customized from country to country, according to Rhonda Latreille, president of the Canadian Academy of Senior Advisors in Burnaby, B.C.

“The intention of our designation is to provide professionals with information about the aging process, so they’re more effective in their own industry,” Latreille says. “They bring their technical expertise to the course, and we’re teaching people how to apply that more appropriately to an aging market.”

Topics include the psychological aspects of aging, Canada’s health-care system, housing options, estate planning and the abuse and exploitation of seniors.

The training begins with 20 to 40 hours of preparation, followed by a three-and-a-half-day live class. The course costs $1,400, plus $895 for the self-study program. (Under a “fast start” alternative, the course can be taken for $1,100). The annual membership fee, included in the first year’s tuition, is $195.

There are 25,000 CSAs in North America, including 1,200 in Canada — the majority of them in financial services.

For more information: www.canadacasa.-com.



ELDER PLANNING COUNSELLOR

Around the time the CSA was being developed, Jim Ruta, a marketing consultant for financial advisors in Burlington, Ont., was scouting elder planning programs in the U.S. and looking for one that could be licensed in Canada. He felt that, although the CSA is a good program, Canada needed one that was built from scratch.

“Much of the CSA program seems to be culturally specific,” says Ruta, president of The Expert Institute. “Americans don’t come to Canada on vacation in the winter, for example. If you’re going to do it, why not start from the ground up?”

The program was developed by Pro-Seminars International, a Hamilton, Ont.-based continuing education company. The firm created 1,250 pages of material, including a desk reference and three manuals now in their sixth revision.

There are no prerequisites for the EPC training program, which consists of three days of live classes plus a half-day examination. The live course costs $1,000; the distance course is $1,100. Annual membership is $150; the first year’s membership is included in tuition.

For more information: www.cieps.com.



PROFESSIONAL RETIREMENT PLANNER

If you find that most of your work with clients involves retirement planning, you may want to check out the PRP designation. Wayne Taylor, president of both Taylor Financial Group in Edmonton and the Canadian Association of Pre-Retirement Planners, says PRPs are knowledgeable in financial planning as well as such lifestyle issues as succession planning for family businesses, working retirement options, relationship management, housing, hobbies, and fitness and nutrition.

“This designation is easy to get but hard to keep,” Taylor says. “It requires a commitment to lifelong learning.”

People licensed to work in financial services as well as in health-related fields such as nursing and psychology may apply for certification. Training consists of a one-day live course or a Web-based seminar program. Candidates must have two years’ experience working in a retirement planning-related field, such as financial planning. Registration in the association costs $90. The course is $225; annual membership fee is $50.

There are 60 PRPs in Canada, and they include financial planners, registered nurses and career transition coaches.

“We encourage our members to be active in our organization, to go to our education days and attend our annual conferences,” says Betsy Prospero, the organization’s national administrator in Stratford, Ont.

“You learn things you would never learn in other environments,” says Cartier, who also holds a PRP. “It helps in dealing with clients who are dealing with aging parents, as well as anybody going through a change in jobs or a poignant crisis in life. This kind of training really helps you help those clients.”

For more information: www.retirementplanners.ca. IE