An IRA (Individual Retirement account) is a must for any retirement plan. A qualified financial planner is needed to set up an IRA and manage it for a client.
The Certified IRA Services Professional certification (CISP), can help financial planners distinguish themselves from others who are not fully knowledgeable about their role in helping clients manage their IRAs. A CISP certification is proof of wealth and trust professionals’ domain expertise. It is an optional credential that doesn’t confer any privileges. However, a CISP certification can be valuable in demonstrating that the professional is competent and knowledgeable in IRA knowledge and skills.
CISP certification also demonstrates knowledge of standard IRAs as well as SEP-IRAs. The CISP-trained specialists are knowledgeable about IRA costs, investments and plan portability. They also know how to withdraw IRA funds.
Requirements for CISP
The American Bankers Association (ABA), issues CISP certification. To pass the certification exam and receive a CISP certificate, you will need to have a combination of education and experience.
Route 1
You can apply for the exam directly if you have a minimum of four years experience in the IRA.
Route 2
To apply, you must have at least 2 years of IRA experience. If you have less than two years of experience, you will need to enroll in an additional educational program/course from one the five IRA-based institutions that ABA recognizes.
Ascensus IRA Institute,
ABA IRA Online Institute
Cannon Financial Institute IRA Professional School
Integrated Retirement Initiatives – School
The Entrust Trust Company IRA Academy.
The course takes approximately 12 weeks if learners spend 15 to 20 hours each week.
Learners will learn about eligibility and how to set-up IRAs, SIMPLE and SEP plans. They also get familiarized with all details such as beneficiaries, contributions, rollovers, rollovers, rollovers, and beneficiaries.
Exam Format for Certified IRA Services Professional (CISP).
To be eligible for a CISP credential applicants must pass multiple-choice exams. The Certified IRA Services Professional (CISP), exam questions will be limited to 150.
Second, students have 3 hours to take the exam and can use a calculator.
These are computer-based exams. The result is announced immediately after the exam at test site.
In six weeks, the official results will be available.
The test covers seven main topics.
Here’s an example question:
Which of these data is protected under the Gramm-Leach–Bliley privacy provisions?
Information about public personal
Information about public institutions
Nonpublic personal data
Information about institutions that are not public
If you don’t know what studying is, the correct answer to your question is “c. Nonpublic personal information
Costs of CISP
ABA members receive a discount on classes It costs $1595 for members and $1795 to non-members. Applicants with at least 4 years of IRA experience may skip the classes.
All applicants must pay $295 application fee and $550 exam fee.
Exam retakes cost $300 and can only take place after 90 days. There is no limit on the number of retakes. However, the applicant must pass the exam within three years of the first attempt. He will have to pay the application fees again.
The code of ethics must be adhered to by all applicants. They must also take 24 credits of continuing education equal to 20 hours each year.
A $199 annual membership fee is required.
While it is not required to hold a CISP certification in order to work in retirement planning, it is considered an advantage to have one.
