Key Reasons Financial Advisors Should Attain Certifications

1. Certifications Enhance Your Credibility

For Tenured Advisors

If you are a tenured advisor intent on keeping the clients you have as well as adding new clients, certifications will demonstrate you are up-to-date on our rapidly changing industry. They give clients and prospects a level of comfort because so many investors are now familiar with popular certifications in a way they were not in decades before.

For Financial Advisors Building a Practice

If you have only been in the industry for a short while, prospecting should be your focus since that is the only way to grow your practice. Your FINRA licenses give you credibility since they testify to your basic knowledge of the securities business. But that’s all they do. Most investors know you must have a series of licenses to work as a Financial Advisor.

2. Working for a well-known firm helps but isn’t enough

If you are associated with a well-known firm, that relationship bestows a certain credibility upon you. But holding third-party certifications in wealth management will enhance your credibility. You’re competing with a lot of Financial Advisors. Certifications will help you stand out from the crowd.

3. External Certifications Are Critical If Your Firm Isn’t Well Known

If your firm is not well known, then certifications are critical since they are the only measure you can present to demonstrate your expertise. Registered Investment Advisory firms have been the fastest-growing segment of our industry over the last four years.

Your RIA firm might be one of the very best, but it takes time to build a “brand,” and until your firm has done that, you must have relevant certifications.

4. Certifications Build Credibility with Referral Sources

Initially, your best referral sources will be friends, family, business associates, and clients from previous careers. Most likely, they will want to help you, but they need to be assured that you have mastered your new profession.

It can be asking too much of your connections to refer you to High-Net-Worth or Ultra High-Net-Worth (HNW/UHNW) prospects if they aren’t certain of your knowledge in this new field. This is especially true if your previous profession was not associated with the financial services industry.

5. Certifications Demonstrate Your Investment in Your Profession

Getting certified in various areas will demonstrate your interest and your investment of time in the intricacies of the financial industry. This can be especially important if many of your clients or prospects are retired or in their pre-retirement years. Retirement savings form the largest sum of money accumulated in the United States. You bear a heavy responsibility when advising clients on these assets.

6. Certifications Will Keep You Informed of Changes

To maintain your certifications, you will most likely have to get a specific number of Continuing Education (CE) hours per year. CE will keep you up to date on changes in that area. Additionally, most certifying groups maintain websites with detailed information you can refer to.

View our certifications: https://www.cannonfinancial.com/whatwedo/designations

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Contributing Writer: Subject Matter Expert Charles McCain