It's official: CIMA now official

The Investment Management Consultants Association got a thumbs up today from the American National Standards Institute for its CIMA designation. The certified investment management analyst program was launched in 1988 and will become the first financial services credential to get the seal of approval from the ANSI. The institute is the U.S. representative to several regional and international organizations, including the International Organization of Standardization, that set standards and certify accreditations in a wide range of businesses and industries around the world. “This sets the CIMA apart from other designations and brings it to a higher standard,” said Jamie Parrish, marketing manager for IMCA. The CIMA designation is intended for “advanced investment consultants,” according to Ms. Parrish. Applicants have two years to complete the program, which includes a qualifying exam, five days of classes at The Wharton School of the University of Pennsylvania, and a final certification exam. The curriculum covers subjects such asset allocation, investment policy, manager search and selection, performance measurement and attribution, behavioral finance, risk management, derivatives, legal and regulatory environment, and ethics. CIMA applicants must also have three years of experience in the financial services field. According to the IMCA website, the cost of getting the designation is between $7000 and $11,000. The IMCA had to do several things to earn the ANSI accreditation. For one, it had to separate the IMCA's board of directors from the certification commission that sets policy for the designation. “That was an early and major step,” said Gary Diffendaffer, deputy executive director of certification at IMCA. It also had to separate the education element of the program — which is currently conducted only by Wharton, from the testing function, which IMCA outsources to a testing firm. The organization has also developed a process for handling complaints against CIMA holders and meting out disciplinary actions if necessary. “If complaints rise to the level of disciplinary actions, cases are heard by hearing panels and can result in both public and private disciplinary actions,” Mr. Diffendaffer said. Those actions include suspending or revoking the CIMA designation. There are currently about 6100 people with the CIMA, making it the smallest of the three major credentials for financial advisers. About 62,600 people hold the certified financial planner designation and there are more than 100,000 certified financial analysts around the world.