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Chartered financial management refers to the handling of assets by a chartered finance professional. A number of organizations offer chartered certifications to those who meet their standards. People with such qualifications may offer a greater degree of security to their clients because they adhere to specific professional practice guidelines, codes of ethics, and standards. Clients looking for financial managers can ask where managers earned their certifications if they want to learn more about the specifics, and this is advised, because the standards can be quite variable.
Typically, in order to become a chartered finance professional, people need to complete an undergraduate education, pass several examinations, and agree to abide by a code of ethics. There may also be experience requirements, as these can provide valuable skills that are not replaceable with training. Many organizations offer several different levels, to allow people to obtain entry-level certifications and work their way up. Those who bear certifications are entitled to list them on their professional communications, and may have the right to formal titles like Chartered Financial Analyst (CFA).
Assets held in chartered financial management are handled by someone with certifications who can handle various aspects of investment. This can include making investment purchases in stocks, bonds, and other securities along with liquidating assets to reduce the risk of losses for the client. The manager utilizes a variety of tools to analyze investment opportunities and determine what will mesh most effectively with the needs of the client. Older adults may want a more conservative strategy, for example, because they cannot afford to take losses on their investments.
Professional codes of ethics for chartered financial management typically require people to adhere to applicable laws, including disclosure of conflicts of interest, provision of information about the mixture of holdings in a portfolio, and the preparation of accurate documentation for tax purposes. In addition, ethical standards may require impeccable personal conduct to avoid accusations of ethical violations. When an activity is legally defensible, it may not necessarily be acceptable in chartered financial management if it could endanger a client or the client’s assets.
The level of assurance available through chartered financial management can depend on the certifications held by the investment manager. Investors can look up certifying organizations to learn more about their standards and may be able to check to determine if someone claiming a qualification is in good standing with the organization. If a problem arises, complaints can be filed with regulators as well as the organization that issued the qualification to trigger an investigation. This may determine whether the person should be allowed to continue working or bearing a specific credential.