Difference Between CIMA and CPWA

CIMA is the abbreviation for the Chartered Institute of Management Accountants. The candidate can clear the course by qualifying the three levels (operational level, management level, and strategic level). In contrast, CPWA is the abbreviation for Certified Private Wealth Advisor. This course is a one-level certification exam.

Tired and searching for certifications that you think go well with personality? Need to know if CIMA qualificationCIMA QualificationThe 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 or CPWA exam CPWA ExamCPWA is intended for people who are already advanced professionals. To become a CPWA, an individual must meet all of the program’s eligibility requirements, complete a 6-month online prestudy, pass a certification examination, sign a license agreement, and meet ongoing renewal requirements.read more exam can help? We must tell you that you are not the only candidate. Do not worry! This article will guide you on whether it should be CIMA or CPWA.

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In this article, we will discuss the following –

What is CIMA?

CIMA stands for Chartered Institute of Management Accountants. It is a UK-based premier body dedicated to promoting industry-wide best practices and knowledge dissemination in management accountancy. The institute offers a comprehensive CIMA certification program to validate the skills and capabilities of professionals with varying levels of expertise. CIMA is a 4-tier certification program including:

  • CIMA Certification in Business AccountingCIMA Diploma in Management AccountingCIMA Advanced Diploma in Management AccountingMember of Chartered Institute of Management Accountants

Initiating with an entry-level certification and culminating with an expert-level accreditation, this certification program is designed to accommodate the diverse learning needs of students and professionals working in management accountancy.

What is CPWA?

Certified Private Wealth Advisor (CPWA) Certification is specifically for wealth managers working with high-net-worth individuals, considering their specialized needs. This certification program aims to help financial planning professionals learn how to identify the unique challenges these high-net-worth individuals face and develop strategies directed at efficient tax management, maximizing growth, and discovering suitable avenues for investment.

Investments & Wealth Institute (IWI) offers this certification program to introduce relevant topics like behavioral financeBehavioral FinanceBehavioral finance refers to the study focusing on explaining the influence of psychology in the decision-making process of investors. It explains the occurrence of irrational decision-making in the financial market when it is expected to be a manifestation of rational decisions and an efficient market.read more, portfolio managementPortfolio ManagementPortfolio management involves overseeing a set of investments, including securities, bonds, exchange-traded funds, mutual funds, cryptocurrencies, etc., on a personal or professional levelread more, and risk management to 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 professionals dealing with high-net-worth individuals.

CIMA vs. CPWA Infographics

Entry Requirements

CIMA

There are no specific requirements for the CIMA Certificate in Business Accounting. It is an entry-level certification for which little to no accounting knowledge is required. Instead, a good grasp of mathematics and English is required to qualify for this certification, along with an interest in accounting.

The professional-level qualifications offered by CIMA are divided into operational, management, and strategic level studies. To pursue CIMA Operational Level studies, professionals need a basic level of proficiency in accounting or business studies. The candidate can meet this requirement if they hold any of these qualifications: –

  • CIMA Certificate in Business AccountingMaster’s in Accounting or MBAMembership of ICWAI, ICMAP or ICMABMembership in an IFAC body

Any relevant qualification to get an exemption from the CIMA Certificate in Business Accounting.

The candidate should have completed CIMA Operational Level studies and Operational Case studies to pursue Management Level studies.

To pursue Strategic Level studies, the candidate should have completed both operational and management level studies and their respective case studies.

CPWA

Professional prerequisites:

A candidate must hold a bachelor’s degree from an accredited college or university or have one of the following designations or licenses: –

  • CIMA, CFA, CIMC, CFP, ChFC, or CPA license.A candidate must have five years of professional work experience in the financial services sectorServices SectorThe service sector or tertiary sector refers to one of the portions forming the three-sector model of the economic sector. The businesses in the service industry produce intangible goods in the form of service as output delivering to other businesses or consumers.read more or serving high-net-worth clients.A professional record of ethical conduct, as IMCA’s admissions committee, cross-checked.

Educational prerequisites:

The candidates must complete a six-month pre-study education program culminating with five-day in-class learning at the University of Chicago Booth School of Business.

CIMA vs – CPWA Comparative Table

Key Differences

  • CIMA is organized and offered by the Chartered Institute of Management Accountants (CIMA). CPWA is managed and provided by the Investments & Wealth Institute (IWI).The CIPMA course has three exam levels that an individual must appear and qualify to attain a CIMA degree. These levels are the strategic level, management level, and operational level. In the case of a CPWA degree, an aspirant is only required to qualify for one round of exams as the course is a single-level exam.The CIMA course focuses on management accounting, organizational management, project and relationship management, advanced management accounting, management accounting, and financial reporting and taxation. In comparison, the CPWA course concentrates on subjects such as wealth management strategies, legacy planning, client specialization, and human dynamics. An applicant with a CIMA degree can apply for management accountant, internal auditInternal AuditInternal audit refers to the inspection conducted to assess and enhance the company’s risk management efficacy, evaluate the different internal controls, and ensure that the company adheres to all the regulations. It helps the management and board of directors to identify and rectify the loopholes before the external audit.read more manager, financial analyst, and finance manager. An applicant with a CPWA degree can apply for the job titles of private wealth managers and private wealth advisors.Individuals interested in making a career in financeCareer In FinanceA appropriate degree, such as a B. Com, CPA, or MBA, is required to pursue a career in finance. Then one can choose from a variety of financial careers such as equity analyst, investment banking, asset management, risk management, corporate finance, and so on.read more can choose to pursue the CIMA certification course. In contrast, individuals interested in creating a career in wealth management can opt for the CPWA certificate course.An applicant must have at least fundamental knowledge in accountancy and business studies to apply for the CIMA certification program. In addition, the applicant must qualify for any one of the degrees like membership of ICMAP/ ICWAI /ICMAB, Masters in Business Administration or MBA, Chartered Institute of Management Accountants certificate in BA (business accounting), and such other relevant qualifications.

An applicant willing to pursue the CPWA course must necessarily possess a bachelor’s degree (graduation degree) from a reputed university, a minimum of 5 years of professional experience in serving clients with a high net worthNet WorthThe company’s net worth can be calculated using two methods: the first is to subtract total liabilities from total assets, and the second is to add the company’s share capital (both equity and preference) as well as reserves and surplus.read more, at least one license in CIMA/CIMC/CFA/ChFC/ or CIPA.

  • Operational level

  • Management level

  • Strategic level

  • Human Dynamics

  • Wealth Management

  • Legacy Issues

  • Specialty Client Services

  • Management Accounting

  • Strategic Marketing Management

  • Finance Management

  • Business Accounting

  • Information Management

  • Ethics

  • Behavioural Finance

  • Tax Planning

  • Portfolio Management

  • Risk Management

  • Estate Issues

  • Wealth Transfer

  • Retirement Management

  • Finance Controller

  • Management Accountant

  • Business Analyst

  • Forensic Analyst

  • Project Manager

  • Private Wealth Advisor

  • Private Wealth Manager

  • Financial Planner

  • Financial Advisor

  • Feb 09 – Feb 25

  • May 11 – May 27

  • Aug 10 – Aug 26

  • Nov 09 – Nov 25

Why Pursue CIMA?

An aspirant candidate studying management accountancy or professionally engaged in the field can benefit greatly from the CIMA certification program. Students can opt for CIMA Certificate in Business Accounting, a foundation-level accreditation aiming to help and become acquainted with the basics of management accounting and related areas. That will help gain a foothold in the industry and bring greater credibility in the view of prospective employers.

The next three levels of accreditation are for professionals at the beginner, middle and advanced stages of their learning curve and are designed to let them test their capabilities, work on improvement areas and earn more respect and credibility in the eyes of prospective employers. An increasing number of employers seek accredited professionals and are more comfortable entrusting them with positions of responsibility.

Why Pursue CPWA?

CPWA offers specialized knowledge of wealth management for professionals serving high-net-worth clients. Earning this credential can help them acquire the necessary knowledge and skills as high-net-worth individuals deal with numerous different sets of problems compared with any average investor.

Another reason is it adds credibility, as an increasing number of employers and clients tend to go with professionals who have higher credentials and work experience. This credential can add value to the profile of a wealth manager looking to optimize their skills to serve high-net-worth clients.

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

  • CIMA vs. MBA – DifferencesACCA vs. CIMA – Which is Better?CIMA vs. CMA – DifferencesCFA vs. CIMA – Key differences?Beginner – Guide to CPWA Certification Exam