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Financial advisors can hold a range of certifications and licenses. Two such designations are CIMA (certified investment management analyst) and CFP® (Certified Financial Planner™). The CIMA is intended for those who help people manage their investments, while the CFP® is a much broader certification covering all aspects of personal finance. However, a CFP® may also specialize in investment management.
For help finding a financial advisor who can help you achieve your goals, use SmartAsset’s free financial advisor matching service.
What Is a CIMA?
A CIMA is a certified investment management analyst. This certification is offered by the Investments & Wealth Institute for financial advisors who focus on investment management. In fact, Investment & Wealth Institute’s welcome page for the CIMA certification highlights the average assets under management (AUM) of those with a CIMA ($297 million).
A CIMA can work with either individuals or corporations, but their individual clients tend to have high net worths. They may help with a variety of investments, such as retirement funds, endowments or corporate investments.
One way CIMAs differentiate themselves is they must show expertise in business strategy, operations and management. Hence, they are well suited to helping not only individuals but also businesses.
What Does a CIMA Do?
A certified investment management analyst primarily focuses on helping clients develop and manage investment portfolios. This work often involves evaluating investment strategies, selecting appropriate asset allocations and monitoring portfolio performance over time. CIMAs frequently work with high-net-worth individuals, institutional investors or corporations that require sophisticated investment oversight.
One of the key responsibilities of a CIMA is conducting in-depth analysis of investment products and market conditions. They may review mutual funds, exchange-traded funds (ETFs), alternative investments and individual securities to determine whether those investments align with a client’s goals and risk tolerance. A CIMA may also help design portfolio strategies that balance growth opportunities with risk management.
In addition to portfolio construction, CIMAs may assist clients with broader investment decisions tied to long-term financial objectives. For example, they might help structure retirement portfolios, manage endowment funds or advise businesses on corporate investment strategies. Their training emphasizes asset allocation, manager selection, performance evaluation and behavioral finance.
Because many CIMAs work with larger portfolios, they often collaborate with other financial professionals, such as financial planners, accountants or attorneys. In these cases, the CIMA focuses specifically on the investment management component of a broader financial strategy.
CIMA Requirements
There are two primary prerequisites before one can obtain the CIMA. Firstly, applicants must have three years’ financial services experience. In addition, they must have a satisfactory record of ethical conduct. That determination is made by Investment & Wealth Institute, the organization that sponsors the certification.
CIMA Exam
CIMA certificates are available for both business accounting (BA) and professional qualifications. The BA exam is 120 minutes long with four sections; the first three have 60 questions each, while the fourth has 85 questions. The professional qualification exam comes in the form of three 90-minute-long objective tests, plus 3-hour case studies to go with each objective test. Results are issued 6-8 weeks after the case study window closes.
Continuing Education
Maintaining the CIMA certification requires ongoing professional development through continuing education (CE). These requirements help ensure that certified investment management analysts remain informed about evolving investment strategies, regulatory changes and developments in financial markets.
CIMA professionals must complete 40 hours of continuing education every two years. These educational activities can include industry conferences, professional seminars, online courses or other approved learning programs that focus on investment management and related financial topics. The Investments & Wealth Institute reviews and approves many of these educational opportunities to ensure they meet professional standards.
Continuing education coursework often covers areas such as portfolio construction, behavioral finance, risk management, asset allocation and emerging investment products. As financial markets evolve and new investment tools become available, these learning opportunities help CIMAs stay current with best practices and industry trends.
In addition to completing CE credits, CIMAs must also continue to adhere to the Investments & Wealth Institute’s code of professional responsibility. This includes maintaining ethical standards when working with clients and disclosing any professional conduct issues that could affect their certification status.
What Is a CFP®?
A CFP® is a certified professional planner, which is a professional who can focus on a wide range of personal finance specialties. For example, they may specialize in investment advice, insurance, tax or estate planning, retirement and more. Generally, CFPs® focus on just one of these areas but can help you with the basics in all aspects of personal finance.
CFPs® meet with clients and take inventory of all of their finances, including their investments, properties and cash, as well as any outstanding debt. Then, they work with clients to create a tailored financial plan to help them meet their goals.
Because the CFP® is so broad, CFPs® will often hold other certifications or licenses that match their area of expertise. Hence, a CFP® might also have a CIMA or other certifications such as the retirement income certified professional (RICP).
CFPs® must also adhere to CFP Board’s ethical standards, which includes the disclosure of their involvement in cases involving things like criminal activity and bankruptcy.
What Does a CFP® Do?
A CFP® works with clients to develop comprehensive financial plans that address multiple aspects of personal finance. While some financial professionals focus on a single specialty, CFPs® are trained to evaluate how different financial decisions interact with one another. This holistic approach allows them to help clients plan for both short-term needs and long-term goals.
CFPs® often begin by reviewing a client’s full financial picture. This may include income, expenses, investments, retirement accounts, insurance policies, debt obligations and estate planning documents. After gathering this information, the CFP® analyzes the client’s current situation and identifies strategies that may help improve their financial position.
From there, the planner may develop a written financial plan outlining recommendations across several areas. These can include retirement planning, investment management, tax planning, risk management and estate planning strategies. For example, a CFP® might help a client determine how much to save for retirement, evaluate insurance coverage or develop a tax-efficient investment strategy.
CFPs® also play an important role in helping clients adapt their plans as circumstances change. Major life events such as marriage, career changes, home purchases or retirement can require adjustments to financial strategies. A CFP® may periodically review and update the client’s financial plan to reflect these changes.
Through this comprehensive planning process, CFPs® help individuals organize their finances and make decisions that support long-term financial stability.
CFP® Requirements
Those who want to obtain the CFP® must have at least a bachelor’s degree from an accredited college or university. They must also have three years of financial planning experience or at least 6,000 hours of equivalent part-time experience.
CFP® Exam
The CFP® exam consists of 170 multiple-choice questions divided into two 3-hour sections for a total of six hours. There is a 40-minute break between the two sections. Each section is divided further into two subsections. There are standalone questions as well as those that go with case studies. The exam is scored on a pass/fail basis.
Continuing Education
CFPs® must complete continuing education requirements to maintain their certification and stay current with changes in financial planning practices. The CFP Board requires 30 hours of continuing education every two years, including at least two hours specifically focused on ethics.
These continuing education courses help CFP® professionals stay informed about updates to tax laws, retirement planning rules, investment strategies and financial planning regulations. Because personal finance laws and market conditions can change frequently, ongoing education helps ensure that CFPs® continue to provide informed guidance to their clients.
Continuing education opportunities may include professional conferences, online training programs, industry workshops or university-sponsored courses. Many programs focus on specific areas of financial planning such as retirement income planning, estate planning strategies or tax-efficient investing.
In addition to completing CE credits, CFP® professionals must also reaffirm their commitment to the CFP Board’s code of ethics and standards of conduct. These standards require CFPs® to act in the best interests of their clients and disclose any conflicts of interest when providing financial advice.
CIMA vs. CFP®
While the CIMA and the CFP® are distinct certifications, the two have some similarities in terms of their requirements, as noted in the table below.
Comparison of CIMA and CFP®
| CIMA | CFP® | |
|---|---|---|
| Issuing organization | Investments & Wealth Institute | Certified Financial Planner Board of Standards |
| Prerequisites | – 3 years’ financial services experience – Satisfactory record of ethical conduct | – Bachelor’s degree or higher – 3 years’ experience or 6,000 hours of part-time experience |
| Training requirements | – Educational component offered by approved registered education provider – In-class program at The Wharton School, University of Pennsylvania or online through Yale School of Management | CFP-board registered exam or hold a relevant license, certification or degree |
| Continuing education | 40 hours every 2 years | 30 hours every 2 years |
Those looking for a financial advisor may wonder which certification is better for them, and it really depends what services you’re looking for. If you only want investment advice, a CIMA is a good fit. If you’re looking for more holistic planning, a CFP® should be able to get the job done. Of course, some advisors have both certifications, giving you the best of both worlds.
Bottom Line
CFPs® and CIMAs can have many similarities, but there are also notable differences. For instance, a CFP® might advise clients on investment strategies. However, CFPs® also specialize in many different areas of finance, such as tax and estate planning and insurance. Meanwhile, the CIMA is intended for financial advisors who provide investment advice. But CIMAs must also have at least some knowledge of business processes and strategy, which is absent from the CFP® requirements. Both programs are rigorous, albeit in different ways.
Tips for Financial Planning
- Whether you need a CFP® or a CIMA, it is critically important to invest in your retirement. But if you don’t know how much you have saved for retirement, you could be setting yourself up for financial hardship. Use SmartAsset’s free retirement calculator to estimate your retirement savings.
- Regardless of certifications, a financial advisor can help you achieve your financial planning goals. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three 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.
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