CIMA vs. CFA: What’s the Difference?

Financial advisors can earn a range of certifications and designations indicating their specialty and expertise. Two popular designations are the chartered financial analyst (CFA) and certified investment management analyst (CIMA). The former is a common designation that shows someone has a background in investment reporting and analysis, while the latter focuses on strategic financial management.

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What Is a CFA?

CFA stands for chartered financial analyst, so it is not surprising that many CFAs pursue a career in financial analytics. The CFA program and certification is administered by the CFA Institute, which is a global organization. According to the CFA Institute, the two most common jobs for CFAs are portfolio manager and research analyst.

CFAs typically work in investment analysis roles at financial advisor firms, investment firms, insurance companies, banks and investment funds. Financial planners or advisors with the CFA certification have a mastery of financial analytics, trends and markets. Clients who want help with investing and asset allocation will often work with a CFA.

CFA Prerequisites

To enroll in the CFA Program and register for the Level I exam, you must meet one of CFA Institute’s education or professional experience requirements. You can qualify by holding a bachelor’s degree, being within 23 months of completing one or having a combination of 4,000 hours of professional work experience and/or higher education completed over at least three consecutive years.

You must also have a valid international travel passport, be prepared to take the exams in English and live in a country where CFA Institute can operate. Candidates are also required to complete a Professional Conduct Inquiry that asks about matters such as professional complaints, investigations, disciplinary actions and criminal accusations or convictions.

The CFA Exam

After meeting the requirements for registration, you must then pass all three levels of the CFA Exam. The CFA Institute offers the exam for each level in some combination of February, May, August and November. The recommended study time before taking the exam is 300 hours for each level. ¹

The exam rigorously tests your knowledge of ethics, investment tools, asset classes, portfolio management and wealth planning. However, each of the three levels focuses on a different aspect. The Level I exam covers basic knowledge and focuses on investment tools. Level II emphasizes more complex analysis and focuses on asset valuation. Level III’s focus is on portfolio management.

Since the first CFA exams were administered in 1963, the average pass rate is only 45%. On average, 41% of exam takers pass the first level, 46% pass the second and 55% pass the third. However, of the 11,269 candidates who took the Level III exam in February 2026, 50% passed. ²

After you complete all the necessary requirements, you will receive your certification and become a member of the CFA Institute. Every year, you will have to pay dues and certify that you are adhering to the standards of the CFA Institute.

What Is a CIMA?

CIMA is an acronym for certified investment management analyst. The certification is offered by the Investments and Wealth Institute. The designation focuses on asset allocation, ethics, due diligence, risk measurement, investment policy and performance measurement. Those with the CIMA designation typically focus on investment consulting.

CIMAs generally have jobs with larger financial consulting firms, where they have extensive interaction with clients and manage large accounts. They can work with both individuals and corporations. They typically advise large companies or high-net-worth individuals, for several reasons.

The main reason for this is that the CIMA credential allows these advisors to significantly raise their rates. Additionally, CIMAs have to show they are skilled not only in finance but also in business strategy, management and operations. This means they are well-prepared to assess risk and make decisions for entire corporations or funds. For the same reason, they are often better suited to advise wealthier clients and large corporations.

CIMA certificate holders are required to prove their expertise through continual recertification. This means CIMA designees must complete at least 40 hours of continuing education every two years. ³

CIMA Prerequisites

In order to be eligible for the CIMA certification, you must be an investment consultant with at least three years of professional experience and no record of ethical misconduct. You must also take the two- to four-day executive education program, which is offered in person at the University of Pennsylvania, Yale and the University of Chicago. (Yale also offers an online alternative.)

CIMA Exam

After completing the course, you are eligible to take the CIMA certification exam, which is administered year-round at Pearson VUE testing centers. The test is four hours long and has 110 multiple-choice questions, plus 10 pretest questions.

Other than the mandatory course, you study on your own terms to prepare for the exam. However, you should plan to study for around 150 hours to pass the CIMA exam.

After passing the exam, you’ll still need to pass a second background check, provide a compliance disclosure, complete the license agreement and pay the initial certification fee in order to become a CIMA.

CIMA vs. CFA: How Do They Compare?

CIMA and CFA are both highly respected credentials, especially in the worlds of investing and financial planning. There are similarities between the two credentials, though, and up until 2019, it was possible for CFAs to skip the CIMA course and just take the exam. However, there are differences between the two credentials as well.

CIMA vs. CFA: Key Differences

• Experience and education prerequisites: To be eligible for the CIMA designation, you must be an investment consultant with at least three years of professional experience and complete an approved education program. To register for the CFA Level I exam, you must hold a bachelor’s degree, be within 23 months of completing one or have a combination of 4,000 hours of professional work experience and/or higher education completed over at least three consecutive years.
• Course requirement: The CFA does not require you to take a course, online or in person. In order to be eligible to become a CIMA, you must take a course.
• Exam structure: CFA includes three levels of exams focusing on a broad range of financial topics, while CIMA has only one exam, focusing more on investment consulting and management.
• Focus area: CFA covers in-depth finance, ethics, economics, and quantitative methods, whereas CIMA emphasizes advanced portfolio management and investment consulting.
• Passport requirement: CIMA does not require you to have an international travel passport, while the CFA does.

CIMA vs. CFA: Key Similarities

• Professional standard: Both certifications uphold high ethical standards and require adherence to a professional code of conduct.
• Continuing education: CFA and CIMA require ongoing education to maintain certification, emphasizing the importance of staying current in the field.
• Global recognition: Both are recognized internationally, with CFA having wider global reach but CIMA respected among high-net-worth investment consultants.
• Enhanced career opportunities: Each credential is valuable for advancing in finance, asset management, and investment consulting.

CIMA vs. CFA: Who Earns More?

It’s difficult to determine which credential can lead to higher earnings, especially since there are numerous variables that impact a person’s compensation beyond the professional designation they hold. However, there is data on both the CFA and CIMA that can paint us a rough picture of how much these professionals may earn.

According to the CFA Institute, CFAs earn an average salary of $180,000. But again, keep in mind that a range of financial professionals hold this credential, from entry-level investment analysts to seasoned hedge fund managers.

For example, the 2024 CFA Institute Compensation Study indicates that median compensation for CFA charterholders varies widely by role, geographic location and seniority level. In the United States, portfolio management professionals in hedge funds, quantitative roles and equity-focused positions reported some of the highest compensation levels, with median pay for hedge fund managers at $415,000. In research roles, U.S.-based professionals in sell-side fixed income recorded the highest median compensation among research functions, at $339,000.

However, CIMAs also have high earning potential. The Investments and Wealth Institute, the organization that administers the designation, states that CIMA professionals earn an average of $674,000 per year.

Bottom Line

CFA and CIMA are both established investment-focused credentials, but they emphasize different areas of practice. The CFA program covers a broad range of topics in investment analysis, portfolio management and financial markets, while the CIMA designation focuses more specifically on investment consulting, asset allocation and portfolio construction. Comparing the education, experience and exam requirements for each can help financial professionals determine which credential better aligns with their career goals.

Tips for Finding a Financial Advisor

• 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.
• Another highly regarded certification is the CFP, which stands for Certified Financial Planner™ (CFP®). This designation is given to candidates who have completed extensive training and passed a rigorous exam, among other requirements.

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