United States
Hong KongCFP or AAMS: a starting credential against a career one
The AAMS is a short designation covering asset management basics, with no degree or experience requirement. The CFP is the comprehensive planning credential. The AAMS is reasonable as a first step and is not a substitute.
Different weight classes, and useful to say so plainly because the marketing does not always.
| AAMS | CFP | |
|---|---|---|
| Scope | Asset management fundamentals | Eight planning domains |
| Study time | Weeks to a few months | 12 to 18 months of coursework plus 250 to 300 hours |
| Exam | One, at a modest level | One six-hour integrated paper |
| Degree required | No | Yes, within five years of passing |
| Experience required | No | 6,000 or 4,000 hours |
| Public recognition | Low | High |
What the AAMS is for
Getting a foundation quickly. It suits someone new to the industry who wants to demonstrate commitment and learn the basics before committing to the CFP process. Weeks, not years.
It is also common at firms that use it as an entry credential for advisers early in their careers.
What it is not
A comprehensive planning credential, and not a substitute for the CFP marks in any client-facing role where planning is the service. Different weight.
It covers asset management rather than tax, estate, insurance, retirement distribution or behavior, which is most of what a household needs.
There are a great many designations in this industry, and they vary enormously in rigor. FINRA maintains a directory listing requirements for each, which is the sensible place to check what one actually involves before valuing it.
A reasonable sequence
AAMS while getting into the industry, then the CFP once you have a role and preferably an employer paying for it.
The AAMS gives something to put on a CV in the first year, which matters when applying with no experience. It does not shorten the CFP route.
If you already have the CFP
The AAMS adds nothing. The CFP covers its content and considerably more, and holding both signals less than holding the CFP alone. Fewer letters read better.
That is worth saying because a string of designations after a name reads as less credible rather than more.
CFP® is a registered mark of Certified Financial Planner Board of Standards, Inc. We are not affiliated with, or endorsed by, CFP Board. Other marks belong to their respective owners.
Common questions
What is the AAMS?
The Accredited Asset Management Specialist designation - a short course and exam covering asset management fundamentals, with no degree or experience requirement.
Is it a substitute for the CFP?
No. It covers asset management rather than tax, estate, insurance, retirement distribution or client behavior, which is most of what a household needs advice on.
Is it worth doing?
As a first step for someone new to the industry who wants to demonstrate commitment quickly, or where an employer uses it as an entry credential. It does not shorten the CFP route.
Should you hold both?
If you already hold the CFP, the AAMS adds nothing - the CFP covers its content and more. A string of designations reads as less credible rather than more.
How do you assess other designations?
FINRA maintains a directory listing the requirements for each, which is the sensible place to check what one actually involves before valuing it.