AAMS vs. CFP Designations for Financial Advisors

The Accredited Asset Management Specialist (AAMS) and Certified Financial Planner™ (CFP®) designations are two common certifications that financial advisors may hold, each offering distinct areas of expertise. The AAMS designation focuses on investment strategies, asset allocation, and estate planning for individuals, while the CFP® certification covers a broader range of financial planning topics, including tax strategies, retirement planning and risk management. Understanding the differences between the AAMS and CFP® certifications can help you determine which type of advisor aligns best with your financial needs and goals.

If you’re looking for help with your finances, our free tool can connect you with advisors who serve you area.

What Is an Accredited Asset Management Specialist (AAMS)?

The AAMS is a professional designation awarded by the College for Financial Planning. This certification is designed for financial advisors who specialize in asset management, helping clients make informed decisions about investments, estate planning, and portfolio diversification.

The AAMS program equips advisors with in-depth knowledge of investment strategies, insurance products, tax-advantaged investments and retirement planning to address the unique needs of individual and small-business clients.

AAMS Qualifications

Aspiring AAMSs must complete 10 modules from the College for Financial Planning and then pass an 80-question exam by scoring at least 70%. Upon passing, students declare that they will follow a code of ethics.

To keep their certification, AAMSs must continue taking courses throughout their career to expand their skill set and stay current on new financial tools and trends. Specifically, AAMSs must take 16 hours of ongoing education per two years.

Students can complete the ten modules online and can start any time. Whether students choose self-study or an instructor-led setting, the training encompasses these financial topics:

The Asset Management Process
Risk, Return & Investment Performance
Asset Allocation & Selection
Investment Strategies
Taxation of Investments
Investing for Retirement
Deferred Compensation and Other Benefit Plans
Insurance Products for Investment Clients
Estate Planning for Investment Clients
Fiduciary, Ethical and Regulatory Issues for Advisors

What Is a Certified Financial Planner (CFP)?

A Certified Financial Planner™ (CFP®) is a professional designation awarded by the Certified Financial Planner Board of Standards to individuals who meet rigorous educational, ethical and experience requirements. CFP® professionals are trained in comprehensive financial planning, covering areas such as tax strategies, retirement planning, estate planning, and risk management.

Earning the designation requires completing approved coursework, passing a challenging exam, and accumulating relevant work experience. Additionally, CFP® professionals must adhere to a strict code of ethics and fulfill ongoing continuing education requirements. This certification is recognized as one of the most thorough and versatile credentials in the financial planning industry.

CFP Qualifications

The Certified Financial Planner Board of Standards administers the CPF® certification and conducts background checks on prospective CFPs. Additionally, candidates must provide critical information to the board, such as criminal history, customer complaints and employment history.

CFP training includes the signature “four E’s” necessary for certification: education, exam, experience and ethics.

Education: A CFP® must have a bachelor’s degree from an accredited college or university. After earning a four-year degree, students enroll in a college-level program in personal financial planning. The last step is a CFP Board-registered capstone course that fits their professional pursuits.
Exam: Upon satisfying the educational requirements, candidates must pass an exam. The exam comprises 170 multiple choice questions spread across two three-hour sessions. The exam thoroughly tests aptitude in communication, professionalism, risk management and more.
Experience: CFP applicants must have at least 6,000 hours of financial advising experience. Prospective CFPs with 4,000 of apprenticing experience may apply if they meet other specific standards.
Ethics: Before receiving certification, every CFP must pledge to follow a code of ethics and a lofty standard of professional conduct. This element of CFP certification relates to the fiduciary duty of CFPs. Consequently, they promise to manage finances with objectivity, integrity, fairness and confidentiality.

AAMS vs. CFP: Which One Is Right for Me?

Typically, financial advisors with less experience go for the AAMS. This certification expands the credentials of new advisors and allows them to better aid expert advisors in their work. That said, the AAMS is no light matter – the course and exam cost $1,300 and require about 100 hours of study. However, the AAMS can be an intermediate step towards achieving the CFP®. This is because the AAMS provides the financial advisor with some of the certifications required for the CFP®.

The CFP® is regarded as the gold standard in financial planning. The professional standards and fiduciary status of CFP® professionals mean that clients receive top-notch service that places their interests beyond all else. As a result, this certification is ideal for professionals whose clients need help creating a financial plan.

So, if you need assistance with your financial plan, you may seek the experience of a CFP. On the other hand, if you’re beginning to build your assets, you may seek the guidance of an AAMS.

Bottom Line

Financial advisors can pursue a range of additional certifications to enhance their skills. The AAMS helps newer advisors understand their work and take the next step in their field. The CFP® is more rigorous than the AAMS. It can considerably sharpen financial advisors’ skills and help them become experts in assisting individuals with financial planning needs. While both certifications can help you with your various financial needs, it’s wise to explore each financial advisor’s expertise to decide which certification could help you best achieve your financial goals.

Tips for Choosing a Financial Advisor

Whether you’re looking for a CFP® or AAMS, the process of selecting a financial advisor can be challenging. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
The most important qualification to look for in a financial advisor is adherence to fiduciary duty. Working with a fiduciary advisor ensures that they are legally bound to act in your best financial interests no matter what.

Next Steps

Do you want to learn more about financial advisors? Check out these articles: