What is an IPS?
· An IPS is an Investment Policy Statement which summarizes the client's financial requirements ·
The IPS is usually prepared by an experienced investment manager in conjunction with their client that outlines:
- who the client is;
- what they have, in terms of:
- lifestyle
- income sources and amounts
- their tax situation;
- their financial risk tolerance (how well they handle the uncertainties of the financial markets); and
- what the clients expect to do with their savings over time.
· An RFP is a Request for Proposals seeking responses from Financial Service Providers qualified to meet your needs ·
The “four financial pillars” in Canada were consolidated in 1992 but still provide a useful framework when analyzing our requirements.
Here is a real-life RFP for Financial Services with suggestions for improvement. Identifying details have been disguised.