Monroe Bank & Trust
May 19, 2009
How a Leading Community Bank is Transforming Their Wealth Management Group Through Investment Policy Statements and IPS AdvisorPro®. Read more
The Investment Policy Statement: Providing the Bridge Between Compliance and a Satisfied Client
May 15, 2009
By Norman M. Boone, MBA, CFP ® and Linda Lubitz Boone, CFP®
An investment policy statement helps an advisor communicate to relevant parties the procedures and investment philosophy of that advisor, and it documents the agreements between the advisor and the client about how that client’s money will be managed. The statement should provide the guidelines for investment decisions and set forth the responsibilities of each party.
When our first article about investment policy statements was published in the Journal of Financial Planning in July 1992, very few advisors were using these statements in their practices. Today, the landscape has significantly changed: It is now considered a best practice to provide investment policy statements to all clients, whether or not it is legally directed. Although some compliance officers may disagree, we believe that a properly written investment policy statement can be critical in minimizing the legal liability of your fiduciary clients (qualified plan trustees and trustees of irrevocable trusts, endowments, foundations and charitable trusts) and for that matter, all your clients. Read more
