Saturday, August 3, 2013
Sample Investment Policy Statement (IPS)
An investment policy statement (IPS) is a document drafted between a Dealing Representative and a client that documents an investment plan with a client consistent with KYC This statement provides the general investment goals and objectives of a client and describes the strategies that the manager should employ to meet these objectives consistent with KYC. Specific information on matters such as asset allocation, risk profile and liquidity requirements are included in an investment policy statement. It provides guidance for informed decision-making and serves as both a roadmap to successful investing and a bulwark against potential mistakes or misdeeds. A well-devised IPS that contains only actionable provisions that are intended to be followed can help advisors "talk down" clients who want to drastically (and potentially harmfully) change direction with their portfolio when markets start to falter. An IPS also makes compliance reviews and complaint investigations much easier. See a simple IPS at
Kenmar believe an IPS will help solve many of the problems we see in the advice industry today by improving Rep-client communications. An IPS can be scaled to the needs of the Investor.