The Fact:
A quarter of advisors say they provide investment policy statements to all clients and 44% to some clients.

The Implications:
Investment policy statements are increasing in importance and many firms are providing advisors with templates for these tools to help clients stay focused on their objectives and manage expectations between the client and the advisor.

The Idea:
While the structure of an investment policy statement can and should be standardized, the content is very specific to the client. These documents should include the salient points of the client’s personal situation, identify the long-term goals (including time horizons and risk tolerance) and include a schedule for reviewing the plan. Many advisors will create a separate service agreement and include that with an investment policy statement, in order to go into greater depth on service. Investment policy statements should be reviewed regularly to ensure that client expectations are being managed over time.

The Next Step:
The Business Success Kit provides you with the tips, tools and templates that you’ll need to enhance practice productivity and profitability. It’s the most practical and comprehensive guidebook available for financial advisors. For more information, visit www.caifastore.com and click on the Business Success Kit.