What Is a Chartered Wealth Manager (CWM)?

The Chartered Wealth Manager (CWM) is a professional designation issued by the Global Academy of Finance and Management (GAFM), formally the American Academy of Financial Management (AAFM). It is intended to certify the knowledge and skill of wealth management professionals.

The prerequisites for the CWM program are three years or more of professional experience in wealth management and a GAFM-approved degree or other approved program such as a masters degree in certain fields.

Key Takeaways

  • The Chartered Wealth Manager (CWM) designation is a professional certification provided to wealth managers and offered by the Global Academy of Finance and Management.
  • The CWM certifies professional competence to employers, colleagues and customers in the areas of: financial planning, investments, risk, economics, tax, retirement, estate planning, and money and banking.
  • Applicants must possess a masters degree in finance, law, economics, math, or wealth management and over 5 years of experience. Professors, PhDs, CPAs and Lawyers may apply for individual exemptions.

Understanding Chartered Wealth Manager (CWM)

The Chartered Wealth Manager program focuses on topics such as relationship management, communication, sales, and financial planning and requires 15 hours per year of continuing education requirements.

The GAFM is a global institution that offers candidates certification to improve their knowledge and credentials in finance, accounting, and management consulting. It offers other certifications such as Accredited Financial Analyst (AFA), Accredited Management Consultant (AMC) and Master Financial Planner (MFP). The GAFM Board of Standards was launched in 1996 through a merger between Founders Advisory Committee of the Original Tax and Estate Planning Law Review and American Academy of Financial Management & Analysts.

CWM Requirements

Applicants who wish to pursue the CWM designation must meet minimum academic and work requirements. Candidates must have two of the following:

  • An ABA AACSB, ACBSP or Equis Accredited Financial, Investment, Accounting, Tax or Economics degree
  • Three years of professional experience
  • A government recognized degree: licenses, degree, MBA/Masters or Law Degree, PhD, CPA, recognized designations and specialization work
  • A related degree and exams from an AAFM-approved and accredited university program
  • Completion of online Executive Certification Training Programs

To prove applicants have achieved a masters degree, they must provide submission of:

  • AAFM Certification Application showing education from an AAFM-qualified education provider 
  • Good faith evidence of application, enrollment and completion of degree and exams from accredited or government-sanctioned program
  • Evidence of work experience and any diplomas, licenses, designations, certifications, government work/training, teaching work, research, or other awards

No CWM exam is required. CWM professionals should have expertise covering the following topic areas: 1. Estate Planning and Trusts 2. Asset Management 3. Portfolio Management 4. International Taxation 5. Retirement Law 6. Economics 7. Investments 8. Money and Banking 9. High Net Worth Consulting 10. Relationship Management, Compliance, and Ethics 11. Business Entities & Organizations 12. Risk Management and Insurance

 CWM holders are required to complete at least 15 hours of continuing education annually.

Functions of a CWM

A CWM typically assists retail investors with the following:

  • Build Investment Strategies: Chartered Wealth Managers build strategies around their clients' risk tolerances, personal situations, and long-term financial goals. For example, a CWM may build a stock portfolio of high yielding dividend stocks for an investor who seeks passive income.
  • Provide Independent Advice: A CWM analyzes large amounts of financial news and data and provides clients with an independent assessment of the information. For instance, after reading through a prospectus for an upcoming initial public offering (IPO), a CWM may advise his client to avoid investing.
  • Actively Listen: Clients’ circumstances continually change. A CWM organizes regular meetings with investors and determines if a change in their situation requires an investment strategy review. For example, after a client meeting, a CWM may decide to do a portfolio rebalance after learning about an inheritance. Actively listening helps to ensure CWMs satisfy the Know Your Client (KYC) rule.
  • Teaching: A CWM actively educates investors about the financial markets and how to build wealth. They teach their clients about fundamental principles such as diversification, asset allocation, and the importance of discipline. If a CWM has active trading clients, they may explain the importance of capital preservation and risk/reward.
  • Financial Guardian: Chartered wealth managers monitor the markets for clients and alert them to new opportunities or potential risks that might impact their portfolios. For instance, a CWM may inform a client about a surprise profit warning that is likely to negatively impact a portfolio holding.