What Is the Accredited Asset Management Specialist (AAMS®) Designation?

By: Kaplan Financial Education
October 14, 2019
Man with AAMS helping asset management clients

Accredited Asset Management Specialist (AAMS®) is a professional designation designed for newcomers to the financial advice business that is awarded by the College for Financial Planning (CFFP)—a Kaplan company. Earning the designation also enables experienced advisors to learn more about asset management and improve their credentials. This article explains what the designation is, why it’s valuable, how it can help you in your career, and how to get it.

What Is AAMS®?

AAMS® is a designation program for financial professionals. The program provides advisors with fundamental financial knowledge of asset management and investments. It was started in 1994 and is offered exclusively online by CFFP. The designation is also listed by FINRA, which is a private, self-regulatory organization that regulates certain aspects of the securities industry.

Why the AAMS® Program Is Valuable

When asked about the value of the program, one AAMS® professional said: “This program gave me more knowledge to help structure my communication with my clients. The AAMS® program should be a requirement for anyone involved in asset allocation and money management."

The courses and tests associated with earning the AAMS teach advisors how to evaluate assets and make recommendations. Those who go through the program learn to identify new investment opportunities and also recognize insurance, tax, retirement, and estate issues.

The program is designed to help financial advisors who are just starting out in their careers. However, more experienced financial advisors can benefit from the credential, too, because it lets clients know they have a specialty in asset management. In addition, financial advisors with the AAMS® designation who plan to earn the CFP® designation receive credit for the completion of FP511 in the CFFP CFP® certification education program.

How the AAMS® Designation Can Help Your Career

The AAMS® designation is recognized as the industry benchmark for asset management credentials and is endorsed by leading financial firms. It enables you to serve individual, small business, or investment clients better. If you have an entry-level financial advice position or are a trainee, it can help you advance your financial career. In addition, financial advisors with the AAMS® report an average earnings increase of 20 percent, as well as client base growth and greater job satisfaction.

For clients, the AAMS® is a sign that you can identify investment opportunities specific to their needs. For example, it can reassure nervous clients who need to plan for college tuition or purchase a retirement home. Because you’ve been through the program and earned the AAMS® designation, you can guide those clients and others to the right investments for their goals.

How to Earn the AAMS®

To earn the AAMS® designation, follow these steps:

  1. Complete a 10-module education program provided by CFFP. There are no prerequisites for this program. Students have 120 days from the date they are provided online access to complete a designation program (including testing and passing the Final Exam). The modules cover the asset management process; risk, return, and investment performance; asset allocation and selection; investment strategies; taxation of investments; investing for retirement; deferred compensation and benefit plans; insurance products for investment clients; estate planning for investment clients; and fiduciary, regulatory, and ethical issues for advisors.
  2. Take and pass the AAMS® exam. You must take the test for the first time within six months of enrolling for the program, and you have a year to pass it. There are 80 questions on the exam, and the passing score is 70 percent. Plan on studying for about 80–100 hours.
  3. Agree to abide by a code of ethics.

Think the AAMS® Designation Is Right for You?

If you’re just starting out in your career, the AAMS® offers you a chance to build your credentials. If you’re experienced and want to earn your CFP® mark, the AAMS® program gives you a head start, plus you get a credential in the process. Learn more about the AAMS® designation program and how to enroll.