Certified Private Wealth Advisors (CPWA) are professional financial advisors who advise high-net-worth clients. The Investments and Wealth Institute issues the CPWA certification. CPWAs provide complete financial planning services to high-net-worth individuals with $2-5 million in assets, including investment strategy and portfolio management guidance. They deeply understand the wealth lifecycle from accumulation and preservation to distribution. They develop strategies to minimize taxes, monetize and protect assets, maximize growth, and transfer wealth. Have a financial question? Click here.
Certified Private Wealth Advisor is not for everyone. An aspirant must have prior experience working with high-net-worth clients. You may find the prerequisite, training and exam information below. Candidates for Certified Private Wealth Advisors must meet specific educational, experience, and ethical requirements. CPWA candidates must complete 6 months comprehensive program of study, which includes a combination of self-study and interactive instruction. The curriculum covers investments and asset allocation, tax planning strategies for high-net-worth families, estate planning strategies, financial planning processes, and practice management. The training program can be obtained through the IMCA’s approved course providers, the University of Chicago Booth School of Business or the Yale School of Management, or through their investment firm. The CPWA designation requires candidates to pass an examination that consists of 135 multiple-choice questions, 10 of which are beta. You will be graded on 125 questions only. The exam covers various topics, including investments, risk management, and estate planning for high-net-worth individuals. The exam does not have a predefined passing score. The Modified Angoff Scoring Method is used to grade the exam. Your pass percentage is determined by the complexity of the exam you received. If your exam is easier, the passing score will be higher. But the passing score will be lower if your exam is more complicated. To maintain their CPWA certification, professionals must complete 40 hours of continuing education every two years. This training covers topics related to professional ethics and the practice of private wealth management, as well as any new regulations that may affect the financial services industry. The CPWA exam structure is composed of four sections: Human Dynamics (13%), Wealth Management-Technical Design (34%), Legacy Issues (23%), and Specialty Client Services (30%). Each section contains questions ranging from easy to difficult, with all questions rated on a scale of 1-5 points depending on complexity. Candidates will have four hours to finish the exam. The Human Dynamics section focuses on people's behaviors and how they affect decision-making in the financial services industry. Ethics. Knowledge of maintaining a high level of professional conduct, including the rules in case of any violation. Applied Behavioural Finance. Understanding the origins and evolution of behavioral finance and neurological research, as well as its application to financial decision-making Family Dynamics. Knowledge of resources and abilities required to recognize family dynamics, challenges, and opportunities. This section explores the technical aspects of wealth management. Tax Strategies and Planning. Understanding the principles of taxation, tax planning strategies, and how to apply them in various wealth management scenarios. Portfolio Management. Using tax-aware investment strategies and after-tax return assumptions to calculate portfolio returns. Tax efficiency, tax-loss harvesting, equity performance, and fixed-income manager evaluations are covered. Risk Management and Asset Protection. Learning about high-net-worth families' insurance options and risk management strategies like self-insurance. It also teaches how to evaluate a client's insurance needs and compare policies to identify coverage gaps. This part focuses on specialized services and strategies for high-net-worth clients. Client Focus on Executives. Understanding stock option award programs, basis, holding periods, and risk-reward strategies for exercising options. Client Focus on Closely Held Business Owners. Learning about financing issues, succession planning, and company sale strategies. Client Focus on Retirement. Building assets, retirement plan taxation, net unrealized appreciation, and others. Calculating the required minimum distribution, assessing retirement capital needs, and placing assets in tax-deferred and after-tax accounts. This course covers legacy and estate planning topics. Charitable Giving and Endowments. Understanding charitable lead trusts, donor-advised funds, unrelated business taxable income, and private foundation operations. Identifying public and private charities, taxing donated property, and planning charitable donations. Estate Planning and Wealth Transfer. Learning about incapacity, powers of attorney, post-mortem planning, and other strategies. Assessing a client's estate plan and determining lifetime gifts versus transfers at death to help them understand legal documents. CPWA certification costs $7,295. Included are the application fee, background check, tuition, course materials, executive education room, board, one certification exam attempt, and the initial two-year certification fee. Retaking the exam will require you to pay $225. You have 2 options for where to obtain your executive education. CPWA-certified professionals are satisfied in their jobs, earn more money, and manage more assets for high-net-worth customers than other advisors. Here are some benefits of having CPWA certification. The CPWA certification provides financial professionals with specialized expertise and skills in portfolio management, risk management, asset protection, and legacy planning. Moreover, it also provides insight into the different taxation principles and tax planning strategies that can be applied to various wealth management scenarios. Having a CPWA certification helps financial advisors stand out from the competition and establish their credibility as knowledgeable professionals making them attractive to clients. It also helps them gain more confidence when dealing with high-net-worth clients, as they are better equipped to provide tailored advice for their specific needs. CPWA-certified advisors can use their technical knowledge and understanding of complex taxation issues to increase firm revenues. Moreover, the certification also helps them provide more comprehensive wealth management services to their clients, thereby helping to increase profits. The CPWA certification provides financial advisors with a top-level education in portfolio and asset management, taxation principles and strategies, retirement planning, and legacy planning. They stay ahead of the competition when providing sound advice to high-net-worth clients. Moreover, CPWA certification is a sign of prestige that can further enhance their professional reputation. The Chartered Institute of Management Accountants (CIMA) focuses on business skills, management, and strategy and has a focus on industry. In comparison, the CPWA focus on the life cycle of wealth for high-net-worth individuals. Both CPWA and CIMA certifications offer comprehensive portfolio and asset management training, as well as other areas of investment analysis. However, there are several differences between the two certifications. THE CPWA program is a single-level course focusing on the following four areas of expertise: Human Dynamics, Wealth Management, Legacy Issues, and Specialty Client Services. The CIMA program consists of a Certificate in Business Accounting and a Professional qualification, each broken down into one of the following levels: Operational Level, Management Level, and Strategic Level. CPWA certification candidates can complete the course in 6 to 9 months. On the other hand, candidates for CIMA may need about a year to finish each level. So, it takes about 3 to 4 years to complete the course. The CPWA course fees range from $6,995 to $7,995, depending on the candidate's membership status. On the other hand, CIMA course fees range from $3,055 to $3,666 including exam and study materials. Those who have earned a CPWA certification are qualified to work in various fields, such as wealth management, asset management, portfolio management, and consulting. They could work as private wealth advisors, managers, financial planners, or financial advisors. CIMA professionals are well-suited for corporate finance, accounting, and business management jobs. They may work as a finance controller, management accountant, business analyst, forensic analyst, or a project manager. After completing the Yale School of Management or University of Chicago Booth School of Business program, CPWA candidates can take the certification exam. Meanwhile, CIMA exams are usually held four times a year. The CPWA certification is a rigorous and comprehensive program that provides financial advisors with the skills and knowledge they need to succeed in the wealth management industry. It also gives them an edge in providing sound advice to high-net-worth clients. Candidates who wish to become Certified Private Wealth Advisors must fulfill several specific educational, experience, and ethics requirements. The candidate's membership status determines the amount of the CPWA certification fee, which can range anywhere from $6,995 to $7,995. The CPWA certification equips financial professionals with specialized knowledge and abilities in portfolio management, risk management, asset protection, and legacy planning. Financial advisors can distinguish themselves from the competition and establish credibility as knowledgeable professionals by obtaining CPWA certification. They can increase firm revenue by utilizing their technical expertise and understanding of complex taxation issues.What Is a Certified Private Wealth Advisor (CPWA)?
CPWA Qualification and Training Requirements
Prerequisites
Designation Training Requirements
Designation Exam Type
Continuing Education Requirements
CPWA Exam Structure
Human Dynamics (13%)
Wealth Management - Technical Design (34%)
Client Specialization (30%)
Legacy Planning (23%)
CPWA Exam & Certification Costs
Benefits of Having a CPWA Certification
Provides Specialized Expertise and Skills
Helps Obtain and Maintain High-Net-Worth Clients
Increases Firm Revenues
Vests an Elite Education
CPWA vs CIMA
Exam Structure
Course Duration
Exam Fees and Other Costs
Potential Jobs
Exam Date
Final Thoughts
Certified Private Wealth Advisor (CPWA) FAQs
Financial advisors who have obtained the CPWA certification are listed on the Investment & Wealth Institute website.
Those who have obtained the CPWA certification are eligible to work in various fields, such as wealth management, asset management, portfolio management, and consulting.
The CPWA (Certified Private Wealth Advisor) is a single-level certification test. The CIMA (Chartered Institute of Management Accountants) candidate can complete the course by passing all three levels: operational, management, and strategic. The CIMA focuses on investment advice and asset management. In comparison, the CPWA covers tax, estate, and retirement planning.
The CPWA exam covers topics related to Human Dynamics, Wealth Management, Legacy Issues, and Specialty Client Services. Each topic is further broken down into sub-topics like Investment Strategies, Estate Planning, Risk Management, Tax Planning, Retirement Planning, and more. The test also includes questions on client service practices and ethics.
The CPWA certification fees range from$6,995 to $7,995, depending on the candidate's membership status.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
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