Chartered Mutual Fund Counselor (CMFC) Designation: What It Is, Requirements, and Impact
AN
Summary:
The Chartered mutual fund counselor (CMFC) designation, while no longer actively awarded, remains recognized in the financial services industry. This article provides an overview of the CMFC designation, its requirements, and the role of chartered mutual fund counselors in assisting clients with mutual fund investments.
What is a chartered mutual fund counselor (CMFC)?
Chartered mutual fund counselor (CMFC) is a professional designation for mutual fund advisers. It was previously offered by the College for Financial Planning, now part of Kaplan, to financial services professionals who completed a study program and passed an exam covering mutual fund topics.
Understanding chartered mutual fund counselors (CMFCs)
Applicants who successfully completed the program earned the right to use the chartered mutual fund counselor designation for two years, which could improve job opportunities, professional reputation, and pay. CMFC professionals were required to complete 16 hours of continuing education every other year and pay a nominal fee to continue using the designation.
The chartered mutual fund counselor program was developed in collaboration with the Investment Company Institute and was the only mutual fund designation recognized in the financial services industry. The study program covered various topics, including types of funds, risk and return, asset allocation, retirement planning, and professional conduct.
Why hire a chartered mutual fund counselor?
Chartered mutual fund counselors helped clients select mutual funds, emphasizing how to evaluate funds and make recommendations. They could review a client’s investment portfolio and provide suggestions based on their expertise.
The College for Financial Planning held CMFC designees to strict professional conduct standards. Those not adhering to these standards could face disciplinary action, including suspension or revocation of their designation.
The college for financial planning
The College for Financial Planning, founded in 1972, aimed to formalize the financial planning profession through the creation and use of certifications like the CFP. In 2018, Kaplan acquired the College, which continues to offer programs in financial planning, asset management, wealth management, and retirement planning.
Frequently asked questions
Is the CMFC designation still relevant?
While the CMFC designation is no longer actively awarded, it remains recognized in the financial services industry. However, individuals may prefer other designations with broader scope or more current curriculum.
What are the continuing education requirements for CMFC professionals?
CMFC professionals must complete 16 hours of continuing education every other year to maintain their designation.
How does the CMFC designation compare to other mutual fund certifications?
The CMFC designation was developed in collaboration with the Investment Company Institute and was the only mutual fund designation recognized in the financial services industry. However, individuals may also consider other certifications such as the Chartered Financial Analyst (CFA) or Certified Financial Planner (CFP) depending on their career goals and interests.
Key takeaways
- The chartered mutual fund counselor (CMFC) designation was a professional certification for mutual fund advisers, previously awarded by the College for Financial Planning.
- While no longer actively awarded, the CMFC designation remains recognized in the financial services industry.
- CMFC professionals must complete continuing education requirements and pay nominal fees to maintain their designation.
- The College for Financial Planning, now part of Kaplan, continues to offer programs in financial planning, asset management, wealth management, and retirement planning.
Share this post: