Chartered Investment Counselor – Definition
Chartered Investment counselor, or CIC, is a title given to an Investment Advisor certified by the Investment Adviser Association (IAA). According to IAA, the charter was put in place to acknowledge the special qualifications of people with significant experience as investment and portfolio managers. Therefore, to be considered as a CIC, it is essential that an investment advisor work in a qualifying role (that is, hold an office which they are well-qualified for) for an investment consultancy firm that is a member to the IAA, hold the reputation of a chartered financial analyst, adhere to the code of ethical conduct and provide professional and trademark references.
A Little More on What is a Chartered Investment Counselor – CIC
Chartered Investment Counselor (CIC) is a globally recognized and respected designation of professionals working as investment advisors with innovative portfolio management skills. The charter is structured to recognize professionals working under IAA member firms whose primary duties are in line with the Investment Advisers Act of 1940 which covers the adviser’s fiduciary and ethical duty to his clients as well as his expertise and abilities.
The IAA grants the CIC designation to outstanding investment advisors who have demonstrated expertise in investment advice and advanced portfolio management, often by supervising large accounts and mutual funds, in other words, the award aims at recognizing individuals with substantial experience as investment analysts and portfolio managers.
Qualifying as a Chartered Investment Counselor
The IAA has approved and vouched for an Investment advisor bearing the CIC classification as an accurate, competent and reliable tool for investment and financial planning. The CIC program was established in collaboration with the Chartered Financial Analyst (CFA) Institute. The prerequisite that applicants possess CFA certification, administered by the CFA Institute is a primary educational aspect of the program today. Applicants may show their duties as part of the application process, they must also provide research and character references, and complete an ethical questionnaire. References are reviewed twice a year, with the deadline for evaluation being 1st April and 1st October.
Further Requirements For Qualifying as a Chartered Investment Counselor.
For an Investment Advisor to be considered as a CIC, he must be employed by a member firm of the IAA in a qualified occupational role for at least a year; have at least five total years work involvement in one or more qualified work-related positions; spend more than 50 percent of the time in a position where investment advise and portfolio management tasks are combined, furthermore, he has to send a letter of reference from the chief executive, managing director or senior supervisor in addition with three letters of recommendation. Lastly, he must be accountable and dedicated to work.
The Investment Adviser Association
The Investment Adviser Association (IAA) is a non-profit organization that exclusively represents the interests of SEC-registered investment adviser firms. The association was founded in 1937 as the Investment Counsel Association of America. Its name changed to Investment Adviser Association in 2005. The association played a key role in the enactment of the IAA act of 1940, the federal law governing the investment consultancy industry. Today, the IAA’s growing membership consists of more than 640 firms that manage $20 trillion in assets for a wide range of clients including individuals, trusts, investment firms, private funds, pension schemes, state and local government and more.
The objectives of the IAA are:
- Encouraging a high level of moral soundness, public accountability, transparency and competence in the investment advisory domain.
- Ensure effective and consistent representation of the investment advisory profession at all levels of government with regards to the creation, drafting and implementation of legislation, rules, and regulations relating to investment advisers.
- Providing rewards, services, and products that support and contribute economic value in the process of doing business for member companies.
The primary duties of the IAA are in line with section 208(c) of the Investment Advisers Act of 1940 as well as the ethical obligations and professional qualifications set out in sections I and II of the standards of practice of the IAA.