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Reprint: Rancho Bernardo Sun and Diamond Gateway, May 2007
Alphabet Soup: Understanding those Acronyms!
In the financial services industry, be aware: a ‘certification’ behind a name can and does mean very
different things regarding education, experience and professionalism. Over the next few articles, we’ll
review several common ‘certifications’ (information obtained from the National Association of Securities
Dealers, Inc. (NASD)).
CFP®: Certified Financial Planner. Three years minimum experience in the financial field and a
bachelor’s degree or five years of personal financial planning experience required. A series of five
subjects to be mastered (from estate planning, taxation to financial planning). The applicant must pass
a 10+ hour, proctored exam and execute an ethics code of conduct. Applicant must also complete the
CFP board registered program or hold an existing professional designation (e.g., CPA, ChFC, CLU,
CFA, PhD in Business Administration, or Attorney’s license). Continuing education: completion of 30
credit hours every two years. The CFP® is a nationally recognized designation and the Certified
Financial Planner Board of Standards is the issuing organization (www.cfp.net/search/).
CSA: Certified Senior Advisor. No prerequisites or experience required. No educational requirements
other than completion of the SCSA classroom (3 ½ day live class course) or self study course. The
final exam is proctored. Continuing education: 18 SCSA credit hours every three years. The Society
of Certified Senior Advisors is the issuing organization (www.csa-csa.com).
CSC: Certified Senior Consultant: No prerequisites or experienced required. No educational
requirements other than 25 hours, self-study (five modules) with three exams. Continuing education:
15 credit hours per year for the first five years only. The Institute of Business &Finance is the issuing
organization (a web site was not provided).
We’ll continue with more next month. Feel free to visit the NASD for more information at www.NASD.
com click on Investor Information, see Professional Designations.
John Goodrich, CFP® ChFC is the principal owner of Goodrich Financial Group, llc. 858.485.7200;
www.goodrichfg.com or john@goodrichfg.com
Alphabet Soup: Understanding those Acronyms!
In the financial services industry, be aware: a ‘certification’ behind a name can and does mean very
different things regarding education, experience and professionalism. Over the next few articles, we’ll
review several common ‘certifications’ (information obtained from the National Association of Securities
Dealers, Inc. (NASD)).
CFP®: Certified Financial Planner. Three years minimum experience in the financial field and a
bachelor’s degree or five years of personal financial planning experience required. A series of five
subjects to be mastered (from estate planning, taxation to financial planning). The applicant must pass
a 10+ hour, proctored exam and execute an ethics code of conduct. Applicant must also complete the
CFP board registered program or hold an existing professional designation (e.g., CPA, ChFC, CLU,
CFA, PhD in Business Administration, or Attorney’s license). Continuing education: completion of 30
credit hours every two years. The CFP® is a nationally recognized designation and the Certified
Financial Planner Board of Standards is the issuing organization (www.cfp.net/search/).
CSA: Certified Senior Advisor. No prerequisites or experience required. No educational requirements
other than completion of the SCSA classroom (3 ½ day live class course) or self study course. The
final exam is proctored. Continuing education: 18 SCSA credit hours every three years. The Society
of Certified Senior Advisors is the issuing organization (www.csa-csa.com).
CSC: Certified Senior Consultant: No prerequisites or experienced required. No educational
requirements other than 25 hours, self-study (five modules) with three exams. Continuing education:
15 credit hours per year for the first five years only. The Institute of Business &Finance is the issuing
organization (a web site was not provided).
We’ll continue with more next month. Feel free to visit the NASD for more information at www.NASD.
com click on Investor Information, see Professional Designations.
John Goodrich, CFP® ChFC is the principal owner of Goodrich Financial Group, llc. 858.485.7200;
www.goodrichfg.com or john@goodrichfg.com
Re-Print: Rancho Bernardo Sun and Diamond Gateway, June 2007
Alphabet Soup: Understanding Acronyms, Part II
Last month we began our discussion regarding ‘professional certifications’ or ‘designations’ commonly
used as a title following a name. We identified CFP®, CSA and CSC.
A good number of designations are accredited by nationally recognized organizations. However, many
of the larger financial firms have established their own ‘in-house’ designations. Generally speaking firm-
issued designations are recognized only by that particular firm none of which mean much to any one
outside the firm.
By now you realize that designations are not alike and can mean very different things regarding
education, experience and professionalism. Which designations represent meaningful achievement, and
which are nothing more than generic terms or job titles? A responsible investor will do the legwork to
find out.
To add to last month’s list, here is information on a few more designations you may be familiar with.
ChFC: Chartered Financial Consultant: Three years fulltime personal finance or insurance experience.
Applicant must study five core and three elective American College Courses. Must pass a final exam for
each course. Continuing Education: 30 continuing education credits (CE) every two years. The
American College is the issuing organization.
CIMA: Certified Investment Management Analyst: Three years of verifiable professional consulting.
Applicant must pass a self study program (4 to 6 months) and a one week on-site course. Must pass a
final exam. Continuing Education: 40 hours every two years. The Investment Management
Consultants Association is the issuing organization.
CFTA: Certified Trust and Financial Advisor: Three years of personal trust experience plus ICB
(Institute of Certified Bankers) approved training program, or five years of personal trust experience and
a bachelor’s degree, or 10 years of personal trust experience. There are no course educational
requirements. Must pass final exam. Continuing Education: 45 hours every three years with a
minimum of six hours in each of four knowledge areas. The ICB is the issuing organization.
Senior Specialist: Our research could not confirm a supporting organization, program, prerequisite or
college course on this ‘designation.’ Regulators urge investors to carefully check credentials of those
persons using this title. Go to the NASD website for an interesting article which addresses the use of
this term.
The variety of designations can be confusing. Some states are beginning to address their use which
should reduce their numbers to those that are recognized by states and regulators as legitimate and
professional in nature. Which designations hold any value for you as an investor is what is important.
Be diligent and ask your advisor, or the one you are considering, about his or her ‘certifications’ and
‘designations’. Go to that website; read about it, and decide for yourself. Visit the NASD for more
information at www.NASD.com and click on Investor Information, see Professional Designations. Thanks
for your continued reading!
John Goodrich, CFP® ChFC is the principal owner of Goodrich Financial Group, llc. 858.485.7200;
www.goodrichfg.com or john@goodrichfg.com
Alphabet Soup: Understanding Acronyms, Part II
Last month we began our discussion regarding ‘professional certifications’ or ‘designations’ commonly
used as a title following a name. We identified CFP®, CSA and CSC.
A good number of designations are accredited by nationally recognized organizations. However, many
of the larger financial firms have established their own ‘in-house’ designations. Generally speaking firm-
issued designations are recognized only by that particular firm none of which mean much to any one
outside the firm.
By now you realize that designations are not alike and can mean very different things regarding
education, experience and professionalism. Which designations represent meaningful achievement, and
which are nothing more than generic terms or job titles? A responsible investor will do the legwork to
find out.
To add to last month’s list, here is information on a few more designations you may be familiar with.
ChFC: Chartered Financial Consultant: Three years fulltime personal finance or insurance experience.
Applicant must study five core and three elective American College Courses. Must pass a final exam for
each course. Continuing Education: 30 continuing education credits (CE) every two years. The
American College is the issuing organization.
CIMA: Certified Investment Management Analyst: Three years of verifiable professional consulting.
Applicant must pass a self study program (4 to 6 months) and a one week on-site course. Must pass a
final exam. Continuing Education: 40 hours every two years. The Investment Management
Consultants Association is the issuing organization.
CFTA: Certified Trust and Financial Advisor: Three years of personal trust experience plus ICB
(Institute of Certified Bankers) approved training program, or five years of personal trust experience and
a bachelor’s degree, or 10 years of personal trust experience. There are no course educational
requirements. Must pass final exam. Continuing Education: 45 hours every three years with a
minimum of six hours in each of four knowledge areas. The ICB is the issuing organization.
Senior Specialist: Our research could not confirm a supporting organization, program, prerequisite or
college course on this ‘designation.’ Regulators urge investors to carefully check credentials of those
persons using this title. Go to the NASD website for an interesting article which addresses the use of
this term.
The variety of designations can be confusing. Some states are beginning to address their use which
should reduce their numbers to those that are recognized by states and regulators as legitimate and
professional in nature. Which designations hold any value for you as an investor is what is important.
Be diligent and ask your advisor, or the one you are considering, about his or her ‘certifications’ and
‘designations’. Go to that website; read about it, and decide for yourself. Visit the NASD for more
information at www.NASD.com and click on Investor Information, see Professional Designations. Thanks
for your continued reading!
John Goodrich, CFP® ChFC is the principal owner of Goodrich Financial Group, llc. 858.485.7200;
www.goodrichfg.com or john@goodrichfg.com
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