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.
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