IMCA Study Defines Practice of Wealth Management

"This job analysis clearly defines wealth management as a distinct practice of advising high-net-worth clients with specialized expertise and skills. Financial advisors without this knowledge who work with affluent clients are doing them a disservice," Walters says.

Following are highlights of the study:

• Wealth management is a distinct practice. Financial planners, accountants, estate planning attorneys or investment professionals may practice advanced competency in this discipline.
• A client must have a minimum net worth of $5 million in order to be considered a high-net-worth client.
• The knowledge advisors need in order to provide competent wealth management incorporates 169 topics within human dynamics, wealth management strategies, client specialization and legacy planning.
• In working with clients, private wealth advisors may use fundamental tasks and a process similar to financial planning or other client-oriented professions; however, they need an advanced and unique set of knowledge and skills to serve high-net-worth clients effectively.
• The CPWA is the appropriate standard for advanced competency in the wealth management practice, and the certification will be adapted to more-effectively address the tasks, knowledge and skills addressed in the study.

IMCA has administered the CPWA certification since 2007.