Difference Between CFP and CS

Deciding on a career is never easy. We understand. Therefore, here is an opportunity to weigh the merits and demerits of both and choose what suits you the best.

Read about these two credentials in the accounting and finance profession. We hope this can help steer the candidates in the right direction in their careers.

What is CFP?

Certified Financial Planner (CFP) is awarded by the US-based Certified Financial Planner Board of Standards, Inc., or CFP Board. CFP Board is affiliated with more than 25 organizations globally, granting this certification. The certified professionals are known as international owners of CFP. However, candidates should keep in mind that the USA and UK boards have different eligibility criteria for this certification.

A professional should first fulfill the educational criteria and have adequate professional financial planning experience before appearing for the exam to earn this credential. The certification holders must also adhere to the ethical standards and code of ethics, as defined by the CFP Board. This certification helps prepare finance professionals to work in the capacity of financial planners for their clients.

What is CS?

Company Secretary (CS) is a professional designation awarded by the Institute of Company Secretaries of India (ICSI) to complete foundation, executive, and professional program-level exams. A Company Secretary usually acts as the chief advisor to the Board of DirectorsBoard Of DirectorsBoard of Directors (BOD) refers to a corporate body comprising a group of elected people who represent the interest of a company’s stockholders. The board forms the top layer of the hierarchy and focuses on ensuring that the company efficiently achieves its goals. read more in matters of legal import. Therefore, they are expected to be experts in corporate laws, securities laws, and corporate governance matters.

A Company Secretary must have the required proficiency in corporate laws and communicate with a high-efficiency level to fulfill his role with greater efficacy. However, a Company Secretary does not have the power to legally represent or defend their client or the company in matters of any legal dispute. A Company Secretary is also responsible for all the issues related to regulatory compliance and deals with corporate values of strategic significance.

CFP vs CS Infographics

Let us understand the difference between CFP vs. CS with the help of infographics.

Entry Requirements

CFP:

Educational Criteria: Candidates must hold a bachelor’s degree accredited by a body recognized by the US Department of Education. However, a bachelor’s degree is a requisite for initial certification, not a requirement to appear for the CFP Certification Exam. It consists of five years of passing the CFP Certification Exam. A candidate is required to verify their bachelor’s degree details with the CFP Board.

Additionally, a candidate must have undergone a college-level program in personal financial planning or relevant equivalent, including the financial plan development course, registered with the CFP Board.

To ensure a professional can deliver quality services to the clients, a candidate must possess three to five years of professional experience in financial planning to earn the authority to use the CFP marks.

CS:

The eligibility criteria for securing the foundation program are 10+2 pass or equivalent students from any stream (Arts, Commerce, Science) except Fine Arts. After completing the foundation program, the candidate can pursue the executive course. A candidate with a bachelor’s degree or a postgraduate degree in any stream (except Fine Arts) can enroll directly at the executive level. But, one can pursue the professional program only after completing the executive class.

CFP vs CS Comparative Table

Why Pursue CFP?

CFP is a highly coveted designation that adds to financial planners’ credibility in the view of their prospective employers and their clients. It is a globally acknowledged credential that helps financial planners enhance their knowledge and skill sets to better serve individuals by acquiring an in-depth understanding of personal financial planning needs.

Financial planning is not the sole domain of financially affluent individuals in an increasingly transparent modern setting. A financial planner has to guide an average individual to realize their financial goals by strategically utilizing available resources.

Why Pursue CS?

Undoubtedly, CS is a highly reputed designation that takes a lot of hard work to pass the exams themselves. However, besides being a tough nut to crack, the trust and credibility invested in this designation are more valuable. Practically, a company Managing Director or Chief Executive Officer is supposed to hold the views of the Company Secretary on matters of legal significance and seek their advice to plan the company’s corporate governance policies. Hence, this designation enjoys global recognition and enables a high level of credibility and responsibility for any professional.

You may also refer to this complete guide on CS exams for more details.

Conclusion

Finance professionals keen on helping their clients with their financial planning would better opt for the CFP as a career. That will also allow adding skills and knowledge in the area and a huge trust across the industry concerning the financial planningFinancial PlanningFinancial planning is a structured approach to understanding your current and future financial goals and then taking the necessary measures to accomplish them. Because this does not begin and end in a specific time frame, it is referred to as an ongoing process.read more roles.

The Company Secretary program is a tougher nut to crack and more suitable for gaining corporate law and finance expertise. However, this certified course brings plenty of opportunities to work in an advisory role to the Board of Directors and other credible positions associated with devising and implementing corporate governance Corporate Governance Corporate governance is a set of rules or practices through which an entity is directed and controlled to increase shareholders wealth by increasing the economic value and is concerned about its relations with various entity stakeholders.read morepolicies.

This article has been a guide to CFP vs. CS. Here, we have discussed the difference between CFP and CS and infographics to compare their career paths, exam patterns, eligibility, and salaries. You can learn more from the following articles: –

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