What is an Accredited Portfolio Management Advisor?
The Accredited Portfolio Management Advisor (APMA) credential is a professional designation for financial advisors issued by the College for Financial Planning.
The APMA program educates advisors on portfolio creation, maintenance, and augmentation.
Students will acquire hands-on practice in analyzing investment policy statements, making asset allocation decisions, and building portfolios.
APMA credential implies that a financial professional has received graduate-level training in these skills and others.
Certification Requirements of APMA
To earn the APMA credential, candidates must first take an educational course and pass an online assessment.
Hence, the educational component comprises a two-part self-study course. The topics include the following:
- Investment risk and return analysis
- Features of fixed-income and debt
- Other pooled investments
- Mutual Funds
- Real assets investing
- Investments taxation and regulatory environment
- Structured products and derivatives
- Performance evaluation of equities and modern portfolio
- Debt and fixed-income valuation and analysis
- Investment strategies, retirement needs analysis, and ethical considerations
- Behavioral finance, client suitability, and constructing portfolios
These courses are provided online, and students have the chance to choose between live online classes or on-demand courses, which can be viewed at any given time.
Moreover, students must pass a quiz composed of 30 questions right after completing each of the 11 modules before proceeding to the next module.
The final exam consists of 90 questions, and students are given three hours to take it. At least 70% of correct answers students should have to get for them to graduate.
After receiving an APMA designation, holders of this certificate can maintain it to be active by paying a renewal fee of $95 and meeting the standards of continuing education, which require 16 hours every two years.
APMA vs CFP
The APMA credential is specific to portfolio management, while the Certified Financial Planner (CFP) designation covers a broad range of financial planning topics.
Both credentials require passing an exam and completing continuing education requirements, but the APMA program focuses more on investments and portfolio management.
CFP professionals adhere to a fiduciary standard, which means they must always act in their client's best interests.
The APMA credential does not have this exact fiduciary requirement.
APMA Certificate Holder Jobs
Most APMA credential holders work as financial advisors, wealth managers, or brokers. They may also find investment banking, private equity, or venture capital jobs.
According to the College for Financial Planning in their 2020 Survey of Trends in the Financial Planning Industry, about 3% of financial planners have the APMA certification.
The survey shows that the APMA is one of the less common certifications.
Key Takeaways
The Accredited Portfolio Management Advisor (APMA) credential is a professional designation for financial advisors.
To earn the APMA credential, candidates must take an educational course and pass an online assessment.
The APMA program focuses more on investments and portfolio management than the Certified Financial Planner (CFP) designation.
Most APMA credential holders work as financial advisors or wealth managers.
FAQs
1) How do I become an Accredited Portfolio Management Advisor?
To become an Accredited Portfolio Management Advisor, you must take an educational course and pass an online assessment.
2) What is the difference between APMA and CFP?
The APMA credential is specific to portfolio management, while the Certified Financial Planner (CFP) designation covers a broad range of financial planning topics. Both credentials require passing an exam and completing continuing education requirements, but the APMA program focuses more on investments and portfolio management.
CFP professionals adhere to a fiduciary standard, which means they must always act in their client's best interests. The APMA credential does not have this exact fiduciary requirement.
3) What jobs can I get with an APMA credential?
Most APMA credential holders work as financial advisors, wealth managers, or brokers. They may also find investment banking, private equity, or venture capital jobs.
4) What are the requirements of APMA?
To earn the APMA credential, candidates must take an educational course and pass an online assessment. After receiving the designation, certificate holders must pay a renewal fee and meet continuing education requirements every two years to maintain their credentials.
5) What are the benefits of having APMA certificates?
The APMA credential is a professional designation for financial advisors that can give holders an edge in the job market.
The program focuses more on investments and portfolio management than the Certified Financial Planner (CFP) designation, making it a valuable credential for those interested in working in this field.
APMA certificate holders also have access to a network of professionals and resources that can help them in their careers.
Additionally, the credential may give holders a salary increase or bonus. Finally, having the APMA credential can make financial advisors feel more confident in their abilities and knowledge.
