Driver’s License

To complement our Practice Management article, “More Than Just an Acronym,” on page 72 of this issue, we took a close look at the 125 complete entries for the 2014 PLANSPONSOR Retirement Plan Adviser of the Year awards program to see which types and what number of designations advisers hold.

As one might expect, the most commonly held designations have broad applicability, yet only one certification, the Accredited Investment Fiduciary^®, or AIF^®/AIFA^®, is held by more than half of respondents. Nearly all respondents (97%) hold at least one accreditation or designation, and 85% hold at least two. But only 62% of respondents hold at least one institutional retirement credential, and only 22% hold two or more institutional retirement certifications.

Do credentials matter? Perhaps. Advisers who oversee the greatest amount of assets under advisement (AUA) are more likely to hold a wide range of designations. One-quarter (25%) of respondents who manage more than $5 billion in assets hold six or more certifications—a number that could, admittedly, represent the total from the team or practice. No respondent whose practice has less than $250 million in AUA has earned six credentials.

As one might expect, the longer an adviser is in the market—or an adviser team is in existence—the more certifications are held. Respondents who have been retirement plan advisers for more than 15 years are six times more likely to hold six or more certifications than those with less than 15 years of experience.

From this small sample, there appears to be some evidence that advisers who seek to set themselves apart, move up-market or remain relevant in years to come can benefit from additional credentials, particularly those aimed at the retirement market.