Certified Trust and Fiduciary Advisor (CTFA)
A Certified Trust and Fiduciary Advisor (CTFA) offers advanced education in the areas of trusts, estates, retirement planning, investments and financial planning – all with a fiduciary standard – or duty – of loyalty above all else.
The CTFA designation is vested by the American Bankers Association (ABA) and is held by professionals who have met a rigorous set of requirements, including passing a comprehensive exam.
CTFA used to stand for Certified Trust and Financial Advisor but has since been updated to Certified Trust and Fiduciary Advisor to reflect the fiduciary focus of the designation.
The CTFA designation can give professionals an edge in a competitive job market, as it shows they are committed to continuing their education and upholding the fiduciary standard.
Roles of a CTFA
A CTFA can work in a variety of settings, including: banks, trust companies, insurance companies, brokerage firms, accounting firms, financial planning firms and estate planning law firms.
A CTFA is qualified to work in a number of different roles, including:
A CTFA can serve as a trust officer of a bank or trust company and be responsible for the fiduciary administration of customer wealth.
Estate Planning Lawyer
A CTFA can provide legal advice on estate planning, including wills, trusts and estate tax matters.
Retirement Plan Consultant
A CTFA is fully qualified to serve in an investment fiduciary capacity, including as an investment officer of a bank or trust company.
A CTFA can provide insurance advice and sell life, disability income, property and casualty and long-term care insurance.
A CTFA can serve as a wealth manager and help clients accumulate, protect and grow their wealth.
CTFA Designation Requirements
Applicants of the CTFA designation are required to have at least 3 years experience in the field of wealth management and should have completed an accredited training program in the last seven years. The accredited training program should include any of these:
- Holding basic, intermediate, and advanced ABA trust certificates
- Completing Cannon Financial Institute Trust School’s Level I, Level II, and Level III courses
- Finishing Campbell University’s trust and investment management degree
If a candidate doesn’t have any of those mentioned above, he or she should have:
- Minimum of five years experience in wealth management and finish a bachelor’s degree, or
- Ten or more years experience in wealth management
Only when an applicant possesses the above requirements will he or she be admitted for the CTFA exam.
The CTFA Exam
In order for applicants to take the exam, a payment of $750 should be given. In the case of retakes, payment amounts to $450.
The four-hour long exam is composed of 200 multiple choice questions. The exam covers the following topics:
- Fiduciary and Trust Activities – 25%
- Financial Planning – 25%
- Taxation Law and Planning – 25%
- Investment Management – 20%
- Ethics – 5%
It should be noted that examinees are not allowed to use a calculator or any mobile device during the test.
To maintain the CTFA designation, holders are to do the following:
- Take 45 continuing education credits every three years
- Uphold the CTFA certification’s code of ethics
- Pay an annual fee of $275 to the ABA
A renewal discount is given to those who possess two or more ABA certifications.
The CTFA designation is the mark of a professional who is dedicated to upholding the fiduciary standard and has the knowledge and experience to provide sound financial advice.
The exam is challenging but with ample preparation, it can be passed. The CTFA designation is well worth the investment.
Disclaimer: The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.
About the Author
True Tamplin, BSc, CEPF®
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®), 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.