2024 Shaping Up To Be a Year to Remember for the CIMA^® program — The Impeccable, Adaptable Designation

Investments & Wealth Institute’s Certified Investment Management Analyst® (CIMA®) certification, widely regarded as the premier professional certification for exceptional financial advisors and investment consultants, is on its way to having an exceptional year of its own. Ever since it was originally conceived of and introduced in 1988, the CIMA program has beaconed to upper echelon financial practitioners, offering elite training in advanced portfolio construction and the investment consulting process.

But, like every profession, staying ahead of evolving industry trends requires vigilance and foresight. Stasis in skills and knowledge can result in mediocre advisor performance, or in the worst-case scenario, a slow descent into irrelevance. The same holds true for financial advisor certification programs. All elite financial designations must be grounded in curriculums that are maintained and infused with new knowledge, skills and learning objectives — which, in turn, must track the real-world evolution of the discipline the certification is designed to serve. Without such dedicated commitment to excellence, the certifying bodies responsible for awarding these credentials would not only fail those attempting to earn the designations but also the clients and investors who trust in the professional capabilities and the commitment to ethics the certifications represent.

Investments & Wealth Institute was explicitly formed to promote and protect the interests of the financial advice profession and the public it serves. As the architects and guardians of the CIMA certification, we work diligently to align the program with the professional capabilities required of wealth management professionals, teams, and firms. We accomplish this by conducting periodic, systemic field reviews of the knowledge, skills and abilities that are specific to advanced portfolio construction and the investment consulting process. This process — the Job Task Analysis — is conducted every three to four years, and is facilitated by professional psychometricians, who serve as expert partners in measuring and assessing critical professional proficiencies.

To start, the existing detailed content outline for the certification is reviewed by subject matter experts and modified appropriately. Then, practitioners in the field are scientifically surveyed to ensure the updated outline reflects the demands and requirements of their real-world practices. The Certification Commission, which is composed primarily of designation-holders and subject matter experts, then reviews the survey results. From there, a new detailed content outline is developed. Using data from the survey, the Commission determines the weighting each topic should carry in the curriculum and certification exam.

To set the exam score required for passing, the Institute employs a Modified Angoff method, in which we assemble subject matter experts and have them individually assess the difficulty of each question on the exam. They then estimate the number of minimally competent testers who would be likely to correctly answer each item. The experts then work as a group to reach consensus on each item, after which a qualified expert calculates the sum of “item difficulty scores,” averaged across all items, to determine the score for passing the exam. This method is broadly regarded as a best practice for ensuring a fair and defensible exam.

The Commission then formalizes the exam blueprint, which helps candidates understand the areas of emphasis within the program. It all culminates with the launch of the newly updated curriculum and exam.

That is what took place on August 1, 2024, when the following went into effect:

• Implementation of a fresh, newly optimized set of CIMA certification learning requirements.

• The curricula taught by the Investments & Wealth Institute and its elite educational partners were updated. For example, see University of Chicago Booth School of Business, Yale School of Management, and the Portfolio Construction Forum.

• A revised and streamlined CIMA exam was implemented.

CIMA certification added to NASAA Model Rule’s Series 65/66 Exam Waiver List

While the Institute conducts the CIMA Job Task Analysis about every five years, some endeavors succeed after many years of diligent effort and perseverance. In early May, 2024, the CIMA certification was recognized by the North American Securities Administrators Association (“NASAA”) as a designation eligible for waiver from the Series 65 or 66 exams. These exams are administered by the Financial Industry Regulatory Authority and serve as minimum qualifications for new investment adviser representatives (“IARs”).

This was the first new voluntary certification to be approved and added to NASAA’s model rule in 24 years!

At the time of NASAA’s announcement, the Chair of the NASAA Exams Advisory Committee publicly noted that the amended rule was an enhancement to the evaluation and registration process for investment adviser representatives, while maintaining high standards within the financial services industry. While each state must still adopt NASAA’s amended rule for CIMA certification to automatically qualify as a waiver from the Series 65 or 66 exam requirement, it speaks volumes to the strength of the CIMA program that its curriculum and exam have been recognized as an appropriate waiver under the states’ licensing requirements for IARs.

The CIMA certification is also accredited under a global personnel certification standard by the ANSI National Accreditation Board (ANSI/IEC 17024), the largest multi-disciplinary accreditation body in the western hemisphere.

An Evolving Global Certification For an Evolving Global Economy

Since its inception, the CIMA certification has earned a strong global reputation and is held by wealth management professionals from twenty countries, including the United States, Canada, France, New Zealand, Australia, Hong Kong, and the United Kingdom. The CIMA Core Body of Knowledge includes sections on the global economy and international trade — such as comparative and absolute advantage, balance of payments, and the roles of the International Monetary Fund, World Bank, and World Trade Organization. Global currency concepts and traditional and alternative global asset class returns, risks and correlations are also key components of the CIMA curriculum, along with interest rates, inflation, and equity valuations in developed, emerging, and frontier markets. Meanwhile, the CIMA Certification Board has recently promulgated broad standards for International Education Providers to help facilitate international growth of the CIMA certification.

CIMA practitioners are required to exhibit knowledge of eighty-nine topics, organized within twenty sections and five knowledge domains.

To qualify for certification, CIMA candidates must have three years, at minimum, of verified professional experience in financial services or a related industry at the time of certification. Candidates must successfully pass two background checks — at time of application and at time of certification.

CIMA — Always Passing the Test of Time

For nearly 40 years, Investments & Wealth Institute has administered stringent, voluntary standards for financial advisors and wealth managers — with the CIMA certification serving the industry’s most respected wealth management practices. Many leading investment firms and wealth management companies recognize and value the CIMA certification. For example, firms like Merrill Lynch, Morgan Stanley, UBS, Wells Fargo, and JP Morgan all employ top-ranking CIMA professionals. The changes in the CIMA program and the recognition it has already earned in 2024 reflect the lasting influence the Institute has – and will continue to have — on the practice of advanced portfolio construction, and competent, ethical investment advice and consulting.