Difference Between CIMA and CAIA

What if you have several options to choose from in the finance industry? Yes, this is true; you have several options. This article compares the two well-known industry certifications – CIMACIMAThe CIMA qualification is a globally recognized credential offered by the Chartered Institute of Management Accountants in UK to individuals interested in pursuing a career in the specialized field of management accountancy.read more and CAIACAIAThere are two levels to the CFA® CAIA exam. Professional Standards and Ethics, as well as an introduction to alternative investments, are covered in Level I, while alternative investments and other integrated topics are covered in Level II.read more.

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What is CIMA?

Yes, this is a UK-based course. CIMA is a course that holds international recognition and offers qualifications and training in management accountancy offered by a professional body based in the UK. Various names have known this institute in the past.

Starting with the ICWA or The Institute of Cost and Work Accountants when it was formed in the year 1919, it then changed to ICMA that is The Institute of Cost and Management Accountants, in the year 1972; followed by its final name that is CIMA, which is now Chartered Institute of Management Accountants in the year 1986 after it was honored as Royal Charter globally recognized accounting qualifications by the commonwealth countries and countries based in the UK.

CIMA is not just an educational organization. It is also a professional accounting body for versatile legal and statutory purposes for the UK government and many global governments.

What is CAIA?

Alternative investments are investments other than investing in stocks and bonds. After knowing the global body that is the CIMA, let’s look at CAIA. The Chartered Alternative Investment Analyst course trains and candidates in Alternative investmentsAlternative InvestmentsAlternative investments refer to investments made in assets classified as non-traditional investment vehicles.read more.

You can also say that investments except for standard equity products and fixed incomeFixed IncomeFixed Income refers to those investments that pay fixed interests and dividends to the investors until maturity. Government and corporate bonds are examples of fixed income investments.read more products fall in the bracket of alternative investments; this includes private equity, hedge funds, commodities such as precious metals and stones, antiques, etc., and real estate.

Who offers this course? This course is offered by non-other than the CAIA association. This association was formed by the Alternative Investment Management Association with the Center of International Securities and Derivative MarketsDerivative MarketsThe derivatives market is that financial market which facilitates hedgers, margin traders, arbitrageurs and speculators in trading the futures and options that track the performance of their underlying assets.read more in 2002. CAIA is not just a nonprofit organization; it is also a global independent organization. They are motivated and focused on creating professionalism by educating candidates in alternative investments.

The candidate has to clear a good two-level examination to clear this course. Not to forget, these examinations are one of the most competitive examinations in finance, business, and commerce. One of the best in its kind examination recognized for its class and standard spreads extreme knowledge, credibility to help candidates show their specialization in finance.

CIMA vs. CAIA Infographics

Let’s understand the difference between these two streams with the help of CIMA vs. CAIA Infographics.

CIMA vs. CAIA Comparative Table

Exam Requirements

CIMA

Of course, most professional courses have requirements. However, this course does not have specific requirements when it comes to CIMA. Your entry might depend on your prior experience. The syllabus designed by CIMA is a step-by-step guide to help you develop your skills and your knowledge as you complete your qualification.

  • Management Accounting

  • Business Accounting

  • Strategic Marketing Management

  • Finance Management

  • Information Management

  • Professional Standards & Ethics

  • Alternative Investments

  • Private Equity, Hedge Funds, Real Assets & Structured Products

  • Volatility & Complex Strategies

  • Due Diligence & Selecting Strategies

  • Institutional Asset Owners & Investment Policies

  • Business Analyst

  • Management Accountant

  • Forensic Analyst

  • Project Manager

  • Finance Controller

  • Portfolio Manager

  • Hedge Fund Analyst

  • Investment Consultant

  • Private Equity Analyst

  • Operational level: 46%

  • Management level: 69%

  • Strategic level: 68% [Source: CIMA Global]

  • Level I: 51%

  • Level II: 58% [Source: Wikipedia]

  • Certificate in Business Accounting: On-demand across the year

  • Operational level: Feb 09-11, May 11-13, Aug 10-12 & Nov 09-11

  • Management level: Feb 16-18, May 18-20, Aug 17-19 & Nov 16-18

  • Strategic level: Feb 23-25, May 25-27, Aug 24-26 & Nov 23-25

  • Level I: Feb 28–Mar 11 & Aug 29–Sep 09

  • Level II: Mar 14-25 & Sep 12-23

CIMA also has exemptions, just like other professional financial courses. For example, if you have cleared exams that exempt you from appearing for some CIMA exams, you save your time and hard work.

You are sure to receive an exemption if you have a relevant degree or professional experience that is relevant. For example, if you have an AAT membership, you will be exempted from appearing at the whole certificate level.

To start with, check the starting point of your CIMA examination to get a written confirmation of your examination exemption status.

CAIA

This certification has no specific requirements, for they do include the base required to a successful professional as CAIA in their syllabus. If you only want to know that you are heading in the right direction and towards the right goal, you must have the following qualities.

  • Basic finance understanding and implementationUse or understand qualitative analysisIf you feel you are interested in working as an expert in alternative investments under designations such as risk manager, alternative investment analystInvestment AnalystAn investment analyst is an individual or firm that excels in the financial and investment research and have a keen knowledge of financial instruments and models. Such financial professionals include portfolio managers, investment advisors, brokerage firms, mutual fund companies, investment banks, etc.read more, manager of portfolios, financial advisor, financial consultant, trader, etc.Interested in learning, particularly alternative investments.

Why pursue CIMA?

CIMA is a qualification that prepares you for business and the corporate world. It includes vigorous studies and assessment methods. The course of CIMA has real-life accounting skills that are not just theoretical but also practical accounting skillsAccounting SkillsAccounting Skills are the set of skills required to present business transactions comprising of financial and non-financial in the books of accounts as per prescribed Standards of Accounting (US GAAP, IFRS, Ind AS) and as a part of legal compliance and analysis of business outcome in an optimum way.read more and competencies included in its syllabus to make you ready for the corporate and the finance world.

The syllabus of CIMA is not only strong in accounting skills. It also includes Big Data, reliability, sustainability, focused reporting, and transformation of finance functionsFinance FunctionsThe finance function refers to practices and activities directed to manage business finances. The functions are oriented toward acquiring and managing financial resources to generate profit.read more. Their syllabus also covers the study of risk and cost and cost management. The employer will understand that you know theory and practice if he sees that you have cleared each level.

CIMA is the 1st education body that focuses on a combined assessment to examine their syllabus. It is to ensure that technology is used widely in education and the finance industry. The assessments of CIMA are mostly computer-based, and for objective type, questions will follow on demand.

Becoming a member of CIMA, you get to be part of the globe’s biggest professional body of management accountants. You can use this designation globally.

Why pursue CAIA?

CAIA members set a different and very high standard in alternative investments. Candidates cannot match this standard with a bachelor’s degree. Not to forget, the members also enjoy benefits associated with the designation of a CAIA. You can choose your domain within the field of alternative investments and work as your choice. You have several domain options such as hedge funds, private equity, real estate, Investment banking is a specialized banking stream that facilitates the business entities, government and other organizations in generating capital through debts and equity, reorganization, mergers and acquisition, etc.read moreinvestment banking, commodity exchange, etc.

You can share several investment and industry improvement ideas by attending and having access to various related events and conferences across the globe as a member of CAIA. These conferences have many benefits; however, two major benefits are

1.    They give you access to the knowledge and improvements of this industry and

2.    They give you an opportunity of interacting and socializing with people who belong to the same field of finance and maybe the same domains.

The association ensures that you get on to a good and a high designation that interests you, along with ensuring you get all the benefits and perks associated with the designation.

Yet this course will not be simple for you, and neither is it rocket science. Which means you can definitely break through the examinations.

Conclusion

If accountancy is in your blood and you are also good at cost management and cost setting, CIMA is just the right course for you, and we would suggest you take up a course that interests you the most.

An alternative investment is a versatile topic. You would love alternative investments if you wanted to compare them with the investments in equities and bonds. CIMA is more about accounting and cost managementCost ManagementCost management is an integral part of business management that works on the basis of estimates, where various activities such as data collection, data analysis and mechanisms, process evaluation, and event reporting are carried out so that the decision-maker can plan and control the organization’s budget requirements, allowing the decision-maker to make informed decisions.read more, whereas CAIA is, as you know, all about alternative investments. CAIA is for you if you love making money sweat.

This has been a guide to CIMA vs. CAIA. Here we discuss the top differences between CIMA and CAIA, infographics, and a comparative table. You may also have a look at the following articles –

  • CIMA Registration FeesCAIA ExamCIMA vs. CFA – DifferencesCIMA or CFP