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The Importance of Multiple Professional Certifications & Private Wealth Management Clients

by Treasa Moran, Volunteer

November 9, 2004 - After cocktails and networking, the CFA Chicago hosted a panel discussion on multiple professional certifications featuring Anne Kern, Michael Falk, CFA and Sean Sebold, CFA, CFP.

Anne Kern, Director of Professional Alliances from the CFP® Board summarized CFP® certification (full background at www.CFP.net/become.). There are pre-exam educational requirements before applying/testing for the CFP®. Preparatory courses are offered at over 285 U.S. colleges and universities. Certain degrees and credentials fulfill the academic requirements (including the CFA®), with holders allowed direct exam registration. About 2% of CFP®s are also CFA® charterholders.

Compared to the CFA® program, the CFP® program is more general. Certification covers a wide range of topics including: Insurance and Risk Management, Investment Planning, Tax Planning, Retirement Planning and Employee Benefits and Estate Planning. In Anne's words, the CFP® covers material "a mile wide and 10 feet deep" while the CFA® covers material "10 feet wide and a mile deep."

Michael Falk, CFA, and VP/Investment Officer of ProManage, determined early in his career that the CFA® designation was best for him given his focus on the retirement plan industry. In his CIO role at ProManage, which he cofounded with a colleague holding a CFP®, the CFA® was critical. Mike also teaches in the CFP® Certificate Program at DePaul University, where he advises students to choose a professional designation suited for their desired career path.

Sean Sebold, CFA, CFP, President of Sebold Capital Management, Inc., thinks investment professionals should.hedge their bets. and pursue both designations. Sean started a company specializing in wealth management for business leaders and owners. For Sean, both designations are crucial. The CFP® designation provides a broad knowledge about critical issues such as taxes and estate planning essential for his work with clients, whereas the CFA® designation provides investment management and portfolio management expertise.

All panelists agreed that fostering trust and building relationships with clients is vital to success. Both Michael and Sean emphasized the value of understanding the psychology of investing. Anne backed their opinions with statistics ranking trust as the top attribute clients seek from their investment advisors with professional credentials ranking lower.