What Is Accredited Asset Management Specialist (AAMS)?
The Accredited Asset Management Specialist (AAMS) is a professional designation awarded to financial professionals by the College for Financial Planning, a Kaplan company. It falls under the broader category of financial designations, signifying specialized knowledge in various facets of asset management. Individuals holding the AAMS designation are equipped to advise clients on a range of personal finance and investment topics. The curriculum for the AAMS program covers essential areas such as investment strategies, insurance products, taxation of investments, retirement planning, and estate planning issues,18.
History and Origin
The Accredited Asset Management Specialist (AAMS) program was established in 1994 by the College for Financial Planning,17. This institution, known for creating the Certified Financial Planner (CFP) certification, developed the AAMS to provide a focused credential for professionals aiming to enhance their expertise in asset management. The program was designed to offer fundamental knowledge of investments and asset management, primarily targeting those starting out in the financial advisory business or experienced advisors looking to specialize further16. Since its inception, the AAMS program has been offered exclusively online, providing accessibility to a wide range of financial professionals seeking to expand their credentials.
Key Takeaways
- The Accredited Asset Management Specialist (AAMS) is a professional designation focusing on asset management and comprehensive financial planning.
- Awarded by the College for Financial Planning, the AAMS requires completion of a self-study program, a comprehensive exam, and adherence to a code of ethics.
- The curriculum covers diverse topics, including investment strategies, taxation, retirement, and estate planning.
- AAMS designees are required to complete continuing education to maintain their credential.
- The AAMS designation can serve as a stepping stone for other advanced certifications in the financial industry.
Interpreting the AAMS
An Accredited Asset Management Specialist (AAMS) designation indicates that a financial professional has completed specialized training in the field of asset management. This includes understanding how to evaluate various investment products, implement portfolio diversification techniques, and address complex financial scenarios for clients15. The credential suggests a foundational knowledge base for advising on personal finances and investments. When working with an AAMS designee, clients can expect an understanding of how different asset classes interact and how to construct portfolios aligned with specific financial goals and risk management considerations.
Hypothetical Example
Consider a hypothetical client, Sarah, who has recently inherited a sum of money and is seeking guidance on how to invest it to meet her long-term goals, such as saving for a child's education and her own retirement. She consults with David, an Accredited Asset Management Specialist (AAMS).
David, leveraging his AAMS knowledge, begins by conducting a thorough assessment of Sarah's financial situation, including her existing assets, liabilities, income, and expenses. He then discusses her financial objectives, time horizon, and risk tolerance. Based on this information, David outlines various investment strategies tailored to Sarah's profile. For instance, he might recommend a diversified portfolio comprising a mix of equities, fixed income, and potentially tax-advantaged investments for her education and retirement savings. David explains the potential returns and associated risks for each component, demonstrating how the overall asset allocation aims to achieve her specific goals while managing risk.
Practical Applications
The Accredited Asset Management Specialist (AAMS) designation is particularly relevant for financial professionals working directly with clients on their investment portfolios and broader financial well-being. AAMS designees often apply their knowledge in roles such as financial advisors, wealth managers, and private bankers. They assist individuals and small businesses with crucial decisions related to capital appreciation, income generation, and wealth preservation.
Their expertise is valuable in navigating the complexities of financial markets and ensuring clients' investment approaches align with their life goals. Moreover, AAMS professionals are expected to adhere to specific ethical guidelines and engage in ongoing regulatory compliance as part of their professional practice14,13. This commitment to ethical standards and regulatory adherence is critical in an industry overseen by bodies like the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), which provides tools like FINRA BrokerCheck to help investors research financial professionals12. For instance, the SEC regularly proposes new rules to enhance oversight of investment advisers to protect the investing public11.
Limitations and Criticisms
While the Accredited Asset Management Specialist (AAMS) designation provides a solid foundation in asset management, it is important to understand its scope relative to other credentials. Some critics argue that certain designations, including AAMS, may not be as comprehensive in their financial planning breadth as others10. The AAMS program is focused on asset management, and while it touches upon related areas like retirement and estate planning, it may not delve as deeply into holistic financial planning as broader designations.
Potential investors should also perform due diligence when evaluating any financial professional's credentials. The financial industry features numerous designations, and their rigor and recognition can vary9. While the AAMS requires an exam and continuing education, it is essential for clients to assess whether the specific expertise offered by an AAMS aligns with their unique and complex financial needs.
AAMS vs. Certified Financial Planner (CFP)
The Accredited Asset Management Specialist (AAMS) and the Certified Financial Planner (CFP) are both reputable financial designations, but they differ in their scope and focus.
| Feature | Accredited Asset Management Specialist (AAMS) | Certified Financial Planner (CFP) |
|---|---|---|
| Primary Focus | Asset management, investments, and related planning areas like taxation of investments, retirement, and estate planning. | Comprehensive financial planning, encompassing a broader range of topics including retirement, investment, insurance, employee benefits, estate planning, and educational planning. |
| Issuing Body | College for Financial Planning (a Kaplan Company) | CFP Board of Standards, Inc. |
| Curriculum Breadth | More specialized in investments and asset allocation. | Broader, covering a holistic view of a client's financial life. |
| Requirements | Completion of a self-study program (10 modules), passing an 80-question exam, and adherence to a code of ethics. Requires 16 hours of continuing education every two years8. | Requires a bachelor's degree, completion of a CFP Board-approved education program, passing a rigorous six-hour exam, several years of relevant experience, and adherence to a strict code of ethics and fiduciary duty. Requires 30 hours of continuing education every two years. |
| Recognition | Recognized within the industry, often viewed as a strong introductory or intermediate credential for investment-focused roles7. | Widely considered one of the most prestigious and recognized designations for financial planning professionals,6. |
The AAMS can serve as a stepping stone or a complementary designation for financial professionals, potentially leading to more advanced certifications like the CFP5.
FAQs
What does AAMS stand for?
AAMS stands for Accredited Asset Management Specialist. It is a professional credential in the financial services industry.
Who issues the AAMS designation?
The AAMS designation is issued by the College for Financial Planning, which is part of Kaplan Professional Education,4.
What topics does the AAMS program cover?
The AAMS program covers a range of topics including the asset management process, risk and return, asset allocation, various investment strategies, taxation of investments, retirement planning, deferred compensation plans, insurance products for investment clients, estate planning, and ethical and regulatory issues for advisors3.
Is the AAMS a good designation for a financial professional?
The AAMS is a respected designation that demonstrates a financial professional's specialized knowledge in asset management. It is particularly beneficial for those focused on investment advice and can be a strong foundation for a career in financial planning2. Its value depends on an individual's career goals and the specific needs of their clients.
How do I verify if someone holds an AAMS designation?
You can verify the credentials of financial professionals, including those holding the AAMS designation, through FINRA's Professional Designations database1. This resource provides information on the issuing organization and requirements for various professional designations.