![What Percentage Of Financial Advisors Have The CFA Designation? - San Diego Fiduciary Financial Advisor - Parabolic (1) What Percentage Of Financial Advisors Have The CFA Designation? - San Diego Fiduciary Financial Advisor - Parabolic (1)](data:image/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==)
I was asked the other day, “How many financial advisors are there in the US, and what percentage of them have the CFA designation?”
It was a good question that I didn’t know the answer to, so I started looking around the web and found this from the Bureau of Labor Statistics:
Number of Personal Financial Advisors (2012):223,400
And on the CFA Institute website, CFA members and charterholders held the following occupations:
Portfolio Manager: 22%
Research Analyst: 15%
Chief-Level Executive: 7%
Consultant: 6%
Risk Manager: 5%
Corporate Financial Analyst: 5%
Relationship Manager: 5%
Financial Advisor: 5%
So doing some very rough math:
According to the website referenced above, there are over 123,000 CFA Institute members worldwide, of which 94% are CFA charterholders. That leaves about 115,620 with the CFA designation.
Now based on the geographic distribution of CFA Institute members, 65% of them are in North America, so 65% of 115,620 leaves us with 75,153 in North America with the charter. If 5% of those are financial advisors, that leaves us with 3,757. The website doesn’t break it down any further than just North America, so you’ll have to guess what percentage of the 3,757 are in the US.
If you bend it as much as you can and say they are all in the US, then 3757 out of 223,400 (yes, the years are imprecise), you get about 1.7% of financial advisors in the US with the CFA designation. The number could be less, it could be more, but that’s the rough math.
(Posted July 22, 2015)
—————————— About Parabolic Asset Management ——————————-
Fee-Only. Fiduciary. Cost-Effective.
•Experienced: Over 15 years of experience, spanning three bull markets and two bear markets. Managed $100 million at Wells Fargo’s Wealth Management division and co-managed a $50 million hedge fund.
•No Conflicts Of Interest: You get unbiased advice because we don’t sell commissioned products. Fee is 1% of AUM (learn more).
•Your Interests Come First: We are held to the Fiduciary Standard, not the Suitability Standard.
•Avoid High Expenses: Index funds have up to 90% lower fees than actively-managed mutual funds and outperform them over the long term. Don’t own them? You may be paying too much.
•Held to theCFA Code of Ethics: Our firm believes in operating with integrity and abiding by the highest ethical and professional standards in the industry.
Rainier Trinidad, CFA
San Diego and Coronado’s Fiduciary Financial Advisor
Parabolic Asset Management
206 J Avenue
Coronado, CA 92118
rainier@parabolic.us
(619) 888-4070
Investment Risk Disclaimers:(i) Investments involve risk and are not guaranteed to appreciate, and (ii) Past performance is no guarantee of future results.
FAQs
Since the first CFA exam was given in 1963, the combined global pass rate for all three levels of the exams is 52 percent. 4% of financial advisors have a CFA.
What percentage of financial advisors are fiduciaries? ›
The client's needs and personal objectives must come first. Typically, most fiduciary advisors are paid a quarterly fee calculated as a percentage of the assets for which they are providing advisory services (not commissions). Only approximately 15 percent of advisors fall under the fiduciary standard.
What percentage of financial advisors have CFP? ›
What percentage of financial advisors are CFP® professionals? About 30% of financial advisors in the United States are CFP® professionals.
Is CFA worth it for financial advisor? ›
While the CFA is the best designation to pursue in terms of investment knowledge, it certainly does not cover all of the aspects of financial planning. In very general terms, however, the CFA designation may help those in the corporate world more than those starting their own financial planning business.
Is being a CFA a big deal? ›
For some who achieve the CFA, the rewards include a higher salary, a better reputation, and an advancement in career; for others, the impact of the CFA on their salary, reputation, and career is more muted.
How prestigious is CFA? ›
According to the CFA Institute, this credential "is the professional standard of choice for more than 31,000 investment firms worldwide."1 It can be especially helpful if you don't have an undergraduate degree in finance, economics, or accounting, and your goal is a job or career in the finance industry.
What is the downside of using a fiduciary? ›
A disadvantage of a fiduciary is that fiduciary advisors are often more expensive than non-fiduciary advisors as they charge higher market rates.
Why would a financial advisor not be a fiduciary? ›
The key difference between a fiduciary and a financial advisor is the level of ethical standards that they are held to when working with clients. This is not to say that a financial advisor does not have any ethical standards. To the contrary, most financial advisors hold themselves to best business practices.
Why is Edward Jones not a fiduciary? ›
Is Edward Jones a fiduciary? Edward Jones does not serve as a fiduciary except for at the Plan level of retirement plans. This means that their advisors aren't legally required to put their clients' needs ahead of their own.
What do top 10% of financial advisors make? ›
According to the U.S. Bureau of Labor Statistics, the median annual wage for personal financial advisors was $94,170 in May 2021. It means half of the financial advisors earned more than that, and half earned less. One in ten earned less than $47,570, while one in ten made more than $208,000.
While both the CFA and CFP exams are quite difficult, the CFA exam is known to be one of the most, if not the most, challenging certification exams in the financial industry. It consists of three 6-hour exams that must be completed and passed in sequential order.
What percentage of millionaires have a financial advisor? ›
When seeking guidance, the wealthy turn to financial advisors at a much higher rate. The study reveals that 70% of millionaires work with a financial advisor, compared to just 37% of the general population.
Is CFA actually worth it? ›
Is CFA exam helpful for getting an Investment Banking Job? Yes, CFA exam is helpful for getting into Investment banking as it trains the candidate for the core finance skills such as valuations. Is it worth getting CFA? It is worth, if you want to get into the core finance industry.
Should I get both CFP and CFA? ›
For those who already hold the CFA® designation, earning CFP® certification makes you more attractive to employers and clients alike. Holding both designations demonstrates that you're committed to serving your clients, and that you offer added expertise and specialization in your profession.
Is a CFA a fiduciary? ›
Certified Financial Planners™ (CFP®s) are fiduciaries, as are Chartered Financial Analysts (CFAs). In all cases, fiduciaries have a relationship with their beneficiaries that requires high levels of trust and good faith, and as a result, must avoid conflicts of interest.
What percent of portfolio managers have CFA? ›
Overall, 30% of asset management professionals working in the Americas have a CFA. Those with zero to three years of experience are on par with that percentage.
What percentage of people complete CFA? ›
Average pass rates tend to fluctuate. Level 1 pass rates have hovered around 37% Level 2 pass rates have been around 45% Level 3 pass rates have been better around 52%
How many CEOS have a CFA? ›
On the other hand, the CFA Institute reports that only 7 percent of all its graduates are working as chief executive officers of big corporations. The most popular career for CFAs is portfolio manager, with 22 percent of individuals working in this position being charterholders.
How many people have CFA certification? ›
CFA charter is the leading investment designation in the world. Interest in the CFA designation is at an all time high. As of Feb 2024, there are more than 190,000 CFA charterholders worldwide in 160+ countries, with an annual growth rate of 5.5% for the 2012-2022 period.