American Academy of Financial Management

Last updated

American Academy of Financial Management
AbbreviationAAFM
Formation1996
Dissolved2015
TypeCertifying and accreditation body
PurposeProfessional certifications
Headquarters Colorado Springs, Colorado
Region served
United States and overseas
Leader George Mentz
Website AAFM

The American Academy of Financial Management (AAFM) was a US-based board of standards, certifying body, and accreditation council focused on the finance sector and wealth management professionals. [1] AAFM was superseded by the Global Academy of Finance and Management (GAFM).

Contents

History

The AAFM was founded in 1996 through a merger of the American Academy of Financial Management & Analysts (AAFMA) and the Founders Advisory Committee of the Original Tax and Estate Planning Law Review. [2]

In January 2015, the AAFM sold its intellectual property to the Global Academy of Finance & Management – the logo for which is the same as that of the AAFM with different letters [3] – and the International Board of Certification Standards, which now awards the AAFM's certifications in the United States. [4]

The AAFM offered multiple professional membership, certifications, and designations. Members had to have come through one of the AAFM-recognized university programs or through a government-recognized executive educational program, although the board waived these requirements in some cases. [5] The AAFM board has never directly provided training, but has recognized hundreds of approved providers. [6]

Certifications/designations

The AAFM awarded a number of its own designations, including chartered asset manager (CAM), chartered market analyst (CMA), chartered portfolio manager (CPM), chartered trust and estate planner (CTEP), chartered wealth manager (CWM), and master financial professional (MFP). [7] See Professional certification in financial services § GAFM Designations.

Some of these designations were available to anyone with an accredited degree or license in finance, investments, securities, economics, or accounting upon payment of a fee. [7] CWM certification normally involved about 80 hours of online study, although holders of certain professional designations, such as a Chartered Financial Analyst (CFA) or Certified Public Accountant (CPA), needed only to take a test and pay a fee; and anyone with sufficient professional experience could skip the test and get the designation by only paying fees. [1] Those with a degree that involved at least some business coursework could also take an AAFM certification course, pay a fee, and receive an MFP. [7]

According to the Financial Industry Regulatory Authority (FINRA) eight designations were "offered and recognized by the issuing organization" (i.e., AAFM). [8] FINRA does not state on these pages that they, or anyone else, recognises them. [8] FINRA does state that it does not approve or endorse any professional credential or designation listed on its website. [9]

In October 2010, The Wall Street Journal published an article detailing the use of questionable credentials by financial advisors that discussed the AAFM extensively. [7] The article noted that the AAFM included among its Global Board of Academic Advisors & Professors several individuals who had never given their permission to be listed as board members. The article criticized the practice of many standards boards, AAFM included, of awarding credentials without requiring applicants to undergo any sort of assessment or examination, quoting the AAFM's founder, George Mentz, as evidence of this practice.

A claim on the AAFM website that it had a special affiliation with both the CFA Institute and the CFP Board, which administer Chartered Financial Analyst and Certified Financial Planner certificate programs, respectively, was rebutted by representatives of both organizations in the article. The CFP Board said that the AAFM had once helped provide continuing education for CFPs, but that it hasn't done so since 2006. [7] Some of the individuals listed in a board of advisors told the WSJ they had no idea they were listed and hadn't agreed to it. [7]

The AAFM has countered that individuals listed on its board of advisors did consent to be listed, posting emails from two individuals on its website. [10] The organization also posted to its website part of the signature page of a document agreeing that the Association for Investment Management Research (the precursor to the CFA Institute) would not contest the AAFM's trademarks, with the signature itself blanked and replaced with the type-written statement, "Signed by Sharon Glover, who must have been Jeannie Andersons Boss at the time" [sic]. [11] What appears to be a version of the same faxed agreement can be found on the GAFM website, with a signature by "Sharon Glover" and the handwritten information "VP & Assoc. General Counsel 1/5/04". [12]

Related Research Articles

Professional certification, trade certification, or professional designation, often called simply certification or qualification, is a designation earned by a person to assure qualification to perform a job or task. Not all certifications that use post-nominal letters are an acknowledgement of educational achievement, or an agency appointed to safeguard the public interest.

<span class="mw-page-title-main">Stockbroker</span> Professional who buys and sells shares for others

A stockbroker is an individual or company that buys and sells stocks and other investments for a financial market participant in return for a commission, markup, or fee. In most countries they are regulated as a broker or broker-dealer and may need to hold a relevant license and may be a member of a stock exchange. They generally act as a financial advisor and investment manager. In this case they may also be licensed as a financial adviser such as a registered investment adviser.

<span class="mw-page-title-main">Canadian Securities Institute</span> Canadian organization

The Canadian Securities Institute is a Canadian organization that offers licensing courses, advanced certifications, continuing education and custom training for financial services professionals in Canada and internationally.

The Chartered Financial Analyst (CFA) program is a postgraduate professional certification offered internationally by the US-based CFA Institute to investment and financial professionals. The program teaches a wide range of subjects relating to advanced investment analysis—including security analysis, statistics, probability theory, fixed income, derivatives, economics, financial analysis, corporate finance, alternative investments, portfolio management—and provides a generalist knowledge of other areas of finance.

The CFA Institute is a global, not-for-profit professional organization that provides investment professionals with finance education. The institute aims to promote standards in ethics, education, and professional excellence in the global investment services industry. Since 1945, the institute has published the peer-reviewed, quarterly journal, the Financial Analysts Journal. It also publishes the Enterprising Investor blog.

Chartered Alternative Investment Analyst (CAIA) is a professional designation offered by the CAIA Association to investment professionals who complete a course of study and pass two examinations. The "alternative investments" industry is characterized as dealing with asset classes and investments other than standard equity or fixed income products. Alternative investments can include hedge funds, private equity, real assets, commodities, and structured products.

<span class="mw-page-title-main">Financial planner</span> Professional who prepares financial plans for people

A financial planner or personal financial planner is a qualified financial advisor. Practicing in full service personal finance, they advise clients on investments, insurance, tax, retirement and estate planning.

The Certified Financial Planner certification is a professional certification mark for financial planners conferred by the Certified Financial Planner Board of Standards in the United States, and by 25 other organizations affiliated with Financial Planning Standards Board (FPSB), the owner of the CFP mark outside of the United States. The certification is generally considered the gold standard in the financial planning industry. The certification is managed by the Certified Financial Planner Board of Standards, Inc., which was founded in 1985 as a 501(c)(3) non-profit organization; it is neither a government designation nor an accredited degree.

Uniform Investment Adviser Law Examination, also called the Series 65 exam, is a test taken by individuals in the United States who seek to become licensed investment adviser representatives. The exam covers topics necessary to provide investment advice to clients.

<span class="mw-page-title-main">Institute of Chartered Financial Analysts of India</span>

The Institute of Financial Analysts of India (IFAI) was established in 1984 as a non-profit educational society in Hyderabad, Telangana, India. The institution has been offering education to students across India through its various programs in the field of higher education. The institution was founded by N. J. Yasaswy, Besant C. Raj and Dr. Prasanna Chandra, the Director of Centre for Financial Management.

Certified Risk Analyst (CRA) is a risk management professional designation offered by the Global Academy of Finance and Management (GAFM). CRA risk management training and certification is available in New York, California, Asia, the Middle East and other locations.

Following is a partial list of professional certifications in financial services, with an overview of the educational and continuing requirements for each; see Professional certification § Accountancy, auditing and finance and Category:Professional certification in finance for all articles. As the field of finance has increased in complexity in recent years, the number of available designations has grown, and, correspondingly, some will have more recognition than others. Note that in the US, many state securities and insurance regulators do not allow financial professionals to use a designation — in particular a "senior" designation — unless it has been accredited by either the American National Standards Institute or the National Commission for Certifying Agencies.

The Chartered Financial Planner is a qualification for professional financial planners and financial advisers awarded by the Chartered Insurance Institute.

The Financial Industry Regulatory Authority (FINRA) is a private American corporation that acts as a self-regulatory organization (SRO) that regulates member brokerage firms and exchange markets. FINRA is the successor to the National Association of Securities Dealers, Inc. (NASD) as well as to the member regulation, enforcement, and arbitration operations of the New York Stock Exchange. The U.S. government agency that acts as the ultimate regulator of the U.S. securities industry, including FINRA, is the U.S. Securities and Exchange Commission (SEC).

The New York Institute of Finance (NYIF) is an American Education Company that was founded by the New York Stock Exchange (NYSE) in 1922.

Certified Financial Planner Board of Standards, Inc., an American 501(c)(6) nonprofit organization, sets and upholds standards for financial planning and administers Certified Financial Planner certification - widely recognized by the public, advisors, and firms as the standard for financial planners - so that the public has access to the benefits of competent and ethical financial planning. CFP certification is held by more than 95,000 people in the United States.

The project controller is a key member of the project team and works directly with the project manager to help define the project's goals and objectives; create and maintain a project's budget and schedule, analyze progress reported against the work schedules; and recommend actions to improve progress. In order to ensure accurate documentation and reporting on a consistent basis, many organizations are positioning the project manager and project controller as part of a centralized project support organization.

Chartered financial consultant (ChFC) is the "advanced financial planning" designation awarded by The American College of Financial Services. Charter holders use the designation ChFC on their resumes and are qualified to provide comprehensive advanced financial planning for individuals, professionals, and small business owners. The authority to use the ChFC mark is granted by the Certification Committee of the Board of Trustees of The American College, and is contingent on adherence to a set of ethical guidelines. According to the American College, "[a]ll ChFC advisors are required to do the same for clients that they would do for themselves in similar circumstances, the standard of ethical behavior most beneficial for their clients." Since 1982, approximately 40,000 people have earned the ChFC through regionally accredited program courses and exams. Successful completion of the ChFC qualifies designees to register as an Investment Adviser Representative (IAR) with FINRA without sitting for the Series 65 examination.

Chartered Financial Divorce Specialist (CFDS) is a Canadian professional designation that can be earned by eligible individuals holding a recognized financial designation and have completed specific training in the financial aspects of life transitions with respect to collaborative (mediated) cohabitation, marriage agreements, relationships or marital breakdowns. It is based on professional best practice standards and a code of professional ethics, granted and monitored by the Academy of Financial Divorce Specialists in Ontario, Canada and other relevant licensing authorities.

References

  1. 1 2 "Is Your Wealth Manager Certifiable?", The Wall Street Journal : D1, October 27, 2004.
  2. ↑ "American Academy of Financial Management FAQ". Archived from the original on December 2, 2010. Retrieved December 6, 2010.
  3. ↑ "Home" GAFM website
  4. ↑ "Press" GAFM website
  5. ↑ "Requirements". American Academy of Financial Management. Archived from the original on December 2, 2010. Retrieved December 6, 2010.
  6. ↑ "ACBSP-Alliance-Mentz Letter" (PDF). November 13, 2004.
  7. 1 2 3 4 5 6 "Is Your Advisor Pumping Up His Credentials?", The Wall Street Journal, October 16, 2010.
  8. 1 2 CAM Archived July 27, 2014, at the Wayback Machine ,RFS Archived July 27, 2014, at the Wayback Machine ,MFP Archived August 14, 2014, at the Wayback Machine ,CWM Archived August 19, 2014, at the Wayback Machine ,CTEP Archived August 19, 2014, at the Wayback Machine ,CMA Archived August 19, 2014, at the Wayback Machine ,CPM Archived August 19, 2014, at the Wayback Machine ,FAD [ permanent dead link ]
  9. ↑ "FINRA Designations Lookup" . Retrieved August 21, 2014.
  10. ↑ Recognized by Wall Street Journal Again, American Academy of Financial Management.
  11. ↑ CFA Contract (JPEG), AAFM.
  12. ↑ Copy of fax from C. Jeannie Anderson, Esq., Associate General Counsel, AIMR to Mr. George Mentz, AAFM, dated January 5, 2004 GAFM website
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.