The job outlook for financial analysts is fairly bright, with an estimated 8% growth rate through 2032. Obtaining professional certifications can enhance your knowledge and potentially boost your earning potential in a competitive job market. Evaluating the options for financial analyst certification can help you determine which credentials may prove most beneficial for you. Let’s analyze whether you need to be certified or how it can help your career.

Ready to grow your business? SmartAsset AMP can help simplify advisor marketing.

Do Financial Analysts Need to Be Certified?

Financial analysts don’t necessarily need to hold specific certifications to work in the field. However, employers may require analysts to complete one or more licensing exams as a condition of employment. Some of the exams analysts may need to complete include:

Securities Industries Essentials (SIE) exam: The SIE assesses your basic knowledge of the securities industry and is typically a prerequisite for completing other licensing exams.
Series 7: A Series 7 license qualifies you to be a general securities representative, meaning you can sell securities in the U.S.
Series 63: The Series 63 exam qualifies you to sell securities in a specific state.
Series 79: This exam qualifies you to be an investment banking representative.
Series 86 and 87: Series 86 and 87 exams assess your knowledge and ability to perform the functions of a research analyst.

Your job role and place of employment can determine which licenses you’ll need to obtain. Note that certain FINRA licenses require employer sponsorship.

Which Financial Analyst Certification Do You Need?

The right financial advisor certification can help you on your career path.

The answer to this question ultimately hinges on your preferred career path. With that in mind, here are some of the most commonly sought-after financial analyst certifications that might be a good fit for your situation.

1. Chartered Financial Analyst (CFA)

What they do: Chartered financial analysts perform financial analysis and high-level investment management. They may be employed by investment banks, advisory firms, broker-dealers, insurance companies, financial research firms, and public or private corporations.

How to obtain CFA certification: Candidates must complete the CFA exam, which is administered by the CFA Institute. You must also have a bachelor’s degree or higher and have a combination of 4,000 hours of work experience and higher education experience.

2. Chartered Alternative Investment Analyst (CAIA)

What they do: Chartered alternative investment analysts specialize in analyzing alternative investments, such as private equity and hedge funds. They may work for private equity funds, hedge funds, venture capital firms or advisory firms that focus on alternative investments.

How to obtain CAIA certification: Candidates must complete two levels of qualifying exams and join the CAIA Association. The CAIA Association offers exams twice a year. Candidates are recommended to dedicate a minimum of 200 hours of study time to each one.

3. Certified Investment Management Analyst (CIMA)

What they do: Certified investment management analysts focus on portfolio management, risk assessment and investment analysis. These financial professionals may be employed by wealth management firms and advisory firms that cater to high-net-worth clients or offer consulting services to endowments and corporations.

How to obtain CIMA certification: The Investments & Wealth Institute offers CIMA certification. You must apply for certification, complete an approved education program, meet work experience requirements and pass the CIMA exam.

4. Chartered Financial Consultant (ChFC)

What they do: Chartered financial consultants provide financial advice to clients, which may include individuals or organizations. They can advise on a range of topics from college planning to estate planning to retirement planning. Advisory firms may employ chartered financial consultants, or ChFCs may run independent businesses.

How to obtain ChFC certification: The American College of Financial Services administers ChFC certification. Candidates must complete eight required courses and their final exams, and agree to a code of ethics. You must have a minimum of three years of experience in financial planning or a related profession to use the designation.

5. Certified Financial Planner™ (CPF®)

What they do: Certified Financial Planners™ provide holistic financial planning services to their clients. CFPs® may work as financial analysts, investment managers, wealth management advisors, portfolio managers and client services advisors.

How to obtain CFP® certification: The CFP® Board oversees the process for obtaining certification. There are four core requirements: education, examination, experience and ethics. You must complete certification coursework through a CFP® Board-approved program before you can sit for the CFP® exam.

6. Financial Risk Manager (FRM)

What they do: Financial risk managers analyze financial data and trends to assess risk and predict investment outcomes. They may specialize in a certain type of risk, such as market risk or credit risk, and work for investment banks, wealth management firms and RIAs.

How to obtain FRM certification: The Global Association of Risk Professionals administers FRM certification. Anyone can register to complete the two required FRM exams. You must also have at least two years of full-time work experience to complete your certification.

7. Certified Management Accountants (CMA)

What they do: Certified management accountants specialize in corporate finance and management accounting. They can work in accounting roles or be employed as financial analysts. CMAs are generally focused on internal accounting processes and decision-making, while certified public accounts (CPAs) can offer financial consulting and tax preparation.

How to obtain CMA certification: The Institute of Management Accountants offers CMA certification. Candidates must complete two exams that span 12 core competencies, including cost management, corporate finance and professional ethics. You’ll also need to join the Institute of Management Accountants and meet work and education requirements to obtain certification.

8. Financial Modeling and Value Analyst (FMVA)

What they do: Financial modeling and value analysts are specialists in modeling and valuation. They can work in corporate finance roles, investment banking, private equity or mergers and acquisitions.

How to obtain FMVA certification: The Corporate Finance Institute offers FMVA certification. You’ll need to choose 17 courses from a list of 54 to complete, and the curriculum is entirely self-paced. The final step in certification is completing the FMVA exam.

Bottom Line

A financial analyst certification could be a worthwhile investment if you’re hoping to expand your business or are looking for new career opportunities.

A financial analyst certification could be a worthwhile investment if you’re hoping to expand your business or are looking for new career opportunities. Researching different certifications, their requirements and what they’re designed to help you do professionally can make it easier to narrow down which ones might be right for you.

Frequently Asked Questions (FAQs)

What Is a Financial Analyst Certification?

A financial analyst certification is a professional credential that demonstrates your knowledge and experience in a specific area. Some of the most common certifications for financial analysts include the CFA, CAIA and CMA designations. Financial analysts may also choose to obtain CFP® marks or become credential as a certified public accountant.

Is CPA or CFA Better for Financial Analysts?

The answer depends on your career goals. If you’re interested in an accounting specialty, then it would likely make sense to obtain CPA certification. On the other hand, if you’re more interested in analysis and investment management services, you’d likely benefit more from the CFA certification.

Are Finance Certifications Worth It?

Obtaining one or more financial certifications can pay off if you’re able to leverage the knowledge and your credentials to gain more clients for your advisory business or move up the career ladder. Certifications add to your credibility, and they can increase your earning power if your services are sought-after.

Tips for Growing Your Advisory Business

Financial advisors are increasingly recognizing the need for a visible online presence. If your digital marketing campaign isn’t producing the results you’re after or you’re simply looking for a less time-consuming way to approach online marketing, SmartAsset AMP can help. This holistic marketing platform works with growth-focused advisors who are looking for leads. Schedule a demo to learn how you can leverage it to grow your business.
Financial certifications may have continuing education requirements that you’ll need to meet to retain your certification status. For example, if you’re obtaining a CFP designation, you’ll need to meet CE ethics requirements. It’s important to keep up with CE requirements to avoid losing your certification status.

Photo credit: ©iStock.com/VDM, ©iStock.com/Natee Meepian, ©iStock.com/AndreyPopov