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 CFA (chartered financial analyst) and CIMA (certified investment management analyst). CFA is a common designation that shows someone has a background in investment reporting and analysis. CIMAs, on the other hand, focus on strategic financial management.

If you need help finding a financial advisor with the CFA, CIMA or another professional credential, SmartAsset’s free tool can match you with up to three advisors who serve your area.

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 a CFA are portfolio manager and research analysts.

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

You must have a bachelor’s degree or be in your final year completing your bachelor’s degree. The bachelor’s degree can be substituted for 4,000 years of relevant full-time work experience. You also have to have an international travel passport, understand English and live in an eligible country. You must also pass the CFA Institute’s conduct criteria, which includes past complaints, 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, July, August and November. The recommended study time before taking the exam is 300 hours for each level.

The exam rigorously tests your knowledge of ethics, investment tools, asset classes, portfolio management and wealth planning. However, each of the three levels focus on a different aspect of this knowledge. 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 exams takers pass the first level, 46% pass the second and 55% pass the third. However, of the 13,600 candidates who took the Level III exam in February 2024, 49% passed.

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 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.

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.)

The CIMA Exam

After completing the course, you are eligible to take the CIMA designation certification exam, which is administered year-round at Pearson VUE testing centers. The test is five hours long and has 140 multiple-choice 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 compliance disclosure, complete the license agreement and pay the initial certification fee in order to become a CIMA.

What’s the Difference Between CIMAs and CFAs?

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: 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 take an education course. To be eligible for a CFA you have to have a bachelor’s degree, be in your final year completing your bachelor’s degree or have 4,000 hours of relevant full-time work experience.
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: 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 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 – from entry-level investment analysts to seasoned hedge fund managers – hold this credential.

For example, the 2024 CFA Institute Compensation Study indicates that median compensation for CFA charter holders 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 a third of professionals who hold the CIMA credential earn $380,000 or more per year.

Bottom Line

Both CIMAs and CFAs bring vast and wide-ranging expertise to investment consulting and portfolio management. If you’re considering a firm to do investment management for you and you see that their investment advisors are CIMAs and CFAs, you’ll know your money is in deservedly credentialed hands.

Tips for Finding a Financial Advisor

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.
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.