Managing Client Expectations using an Investment Policy Statement

Linda Lubitz Boone

October 07, 2014

Creating and maintaining the investment policy statement is arguably the most important function an advisor performs. The IPS can be the bridge between the plan and the process. It can provide a formal agenda for your client meetings. It can help reengage your clients in their investments and the process that you follow in managing their money. This record of the agreements between you and your client about how their money is going to be managed is a critical part of the investment planning process. Likewise, many professionals in the financial advisory services industry are working to enhance their menu of services. Some firms are interested in adding wealth management, while others may be turning independent. Regardless, their common goal is to build their business. In either case, an IPS is a fundamental instrument in building sound advisor and client relationships, and thereby building your business.