CIP Design and Implementation

Since the implementation of RDR, the FCA has continued to become more pedantic regarding the use of investment propositions within IFA firms.

All advisers know that treating customers fairly is the most important aspect of providing client advice, and running a comprehensive investment proposition can be major step forward in addressing this issue. When advisers do not treat customers fairly, the ramifications can be extreme and many IFAs cannot afford for this to happen.

The FCA is continuing to develop its own views on investment propositions and treating customers fairly by implementing procedures which have identified several issues regarding how IFAs provide investment advice to clients.

After extensive talks with the regulator and case study examinations we have identified that IFAs fall short in the initial design and implementation phase of a CIP. Many firms still do not have a full proposition in place, furthermore when they are in place they are not comprehensive enough to cover all aspects of the ever changing regulations, consequently they will provide additional risks to adviser firms and clients. These risks are easy eliminated by adopting a more comprehensive centralised investment proposition.

At Gilt Edge Investment Consultancy, we provide holistic independent reviews of CIPs and help to design new propositions for IFA firms. The reviews cover all initial and on-going research of the different aspects of each proposition and service package for the individual firm. We understand that many investment propositions will be linked to service propositions and our expertise can help to choose the right options for each service; provide upfront and ongoing research on each proposition and update the CIP on a regular basis.

Our research hub includes individual research on:

  1. Discretionary managers
  2. Model portfolio services
  3. Multi asset and Multi Manager opportunities
  4. In-house model portfolios

These individual aspects are then drawn together into one single document that covers all aspects of the individual proposition for a firm. This document is regularly reviewed alongside the individual aspects utilised and updated when required.

Having a CIP designed and implemented now can put yourself as an IFA frim out of the spotlight of the regulator and provide the best opportunities for your clients in the future.