Financial advisers in Alberta must be registered to sell securities with the Alberta Securities Commission (ASC). In addition to being registered with the ASC, many investment salespeople may also hold one or more of the following designations.
All those letters you see after advisers' names can be pretty confusing, but they do tell you something about their education and experience. We'll help you decode some of the more popular ones. Just look below. And don't think that the letters after their name mean "big money only" – advisers with these designations handle accounts of all sizes. Some of the most common designations include:
Certified Financial Planner (CFP): The internationally recognized designation awarded in Canada by Financial Planners Standards Council (FPSC). CFP professionals must meet FPSC's standards in education, experience, examination and ethics. CFP professionals must also have 30 hours of continuing education every year and agree to abide by the CFP Code of Ethics to renew their right to use the designation annually.
Chartered Financial Analyst (CFA): Issued by the Association for Investment Management and Research (AIMR). Candidates must pass three levels of exams in areas including accounting, economics, ethics, money management and security analysis. Candidates must have three years of experience and a bachelor's degree.
Chartered Investment Manager (CIM): This designation, from the Canadian Securities Institute (CSI), requires candidates complete courses in securities and investment and portfolio management.
Chartered Financial Consultant (CH.F.C): Chartered financial consultants study securities, estate planning, insurance and taxes. While there are a number of advisers who hold this designation, this program was phased out in 2002 by the Canadian Association of Insurance and Financial Advisers (Advocis).
While many of these designations may indicate a certain degree of knowledge or experience, none of these designations are approved or endorsed by the ASC. If you encounter any designation, including the ones on this list, always verify the person’s qualifications before seeking their investment advice.
There are numerous other designations that advisers may hold in Canada.
CA (Chartered Accountant): An accountant who has successfully completed the education, examination, and experience requirements of the Institute of Chartered Accountants of Alberta and is a member in good standing of that provincial institute. Members are subject to a code of professional ethics/conduct, mandatory continuing education, and mandatory professional liability insurance in respect of any public accounting practice.
CGA (Certified General Accountant): An accountant who has successfully completed the education, examination, and experience requirements of the Certified General Accountants Association of Alberta and is a member in good standing of that provincial association. Members are subject to a code of professional ethics/conduct, mandatory continuing education, and mandatory professional liability insurance in respect of any public accounting practice.
CLU (Chartered Life Underwriter): An individual who has passed exams administered by the Financial Advisors Association of Canada - Advocis (formerly the Canadian Association of Insurance and Financial Advisors (CAIFA)), indicating that he or she is a qualified life insurance agent.
CMA (Certified Management Accountant): An accountant who has successfully completed the education, examination, and experience requirements of the Society of Management Accountants of Alberta and is a member in good standing of that provincial society. Members are subject to a code of professional ethics/conduct, mandatory continuing education, and mandatory professional liability insurance in respect of any public accounting practice.
FCA (Fellow of the Institute of Chartered Accountants): The highest designation granted by a provincial institute of chartered accountants.
FCGA (Fellow of the Certified General Accountants’ Association): The highest designation granted by a provincial association of certified general accountants.
FCMA (Fellow of the Certified Management Accountants’ Association): The highest designation granted by a provincial association of certified management accountants.
FCSI (Fellow of the Canadian Securities Institute): The highest designation conferred by the Canadian Securities Institute. FCSIs must satisfy educational requirements and have a minimum of five years’ experience in the securities industry. In order to maintain the designation, FCSIs must meet high standards for ongoing professional development and ethical practice.
FMA (Financial Management Advisor): A designation granted by the Canadian Securities Institute to graduates of its FMA program in advanced financial planning and wealth management. Graduates of the FMA program are able to provide advanced financial planning advice to sophisticated and high net worth investors.
MBA (Master of Business Administration): This graduate-level university degree is generally seen as providing its holder with a background in finance and the other managerial dimensions of running a business or other organization.
PFP® (Personal Financial Planner):
The PFP® is the comprehensive financial advice designation for banks, trusts and credit unions. The PFP® certification program requires completion of four courses, the Applied Financial Planning (AFP) Certification Examination and 3 years of relevant work experience. Read more information.
RFP (Registered Financial Planner): A designation administered by the Financial Advisors Association of Canada - Advocis (formerly the Canadian Association of Financial Planners (CAFP)), a non- regulatory, voluntary membership body. No educational program is necessary, but passing an exam is required.
RHU (Registered Health Underwriter): An individual who has passed exams administered by the Financial Advisors Association of Canada - Advocis (formerly the Canadian Association of Insurance and Financial Advisors (CAIFA)), indicating that he or she is an insurance/financial advisor with advanced knowledge in disability insurance underwriting.
SFC (Specialist in Financial Counseling): A designation administered by the Institute of Canadian Bankers (ICB), for bank/financial institution employees, and a counseling-focused supplement to the PFP.
For information on some of the types of courses that are available to financial professionals, visit the website of CSI (www.csi.ca) and IFSE Institute (www.ifse.ca).
Foreign Designations
Keep in mind that foreign designations do not always mean much in Canada. These designations are based on a different regulatory system, which uses different laws and rules, products and tax structures from those in Canada.