Investments  

Guide to centralised investment propositions

  • Describe the advantages of using a CIP
  • Explain how CIPs work
  • Explain how they fit in with consumer duty
CPD
Approx.60min
Guide to centralised investment propositions

Introduction

Building a centralised investment proposition has become a regular part of many advisers' practice.

The advantages are many, but chief among them is the ability to streamline a lot of administration over building a client's portfolio, saving time and effort on building a bespoke portfolio for each client.

Many advisers, some with up to 100 clients, may not have the time to build a client's portfolio from scratch and regularly review their holdings, but a CIP, which may use a model portfolio service, will help them do so more quickly. It is also much easier to check where portfolios are on a regular basis.

CIPs can also help with the consumer duty, with its focus on outcomes and its requirements to demonstrate value and service. Many CIPs can also supply reams of educational material that may be too time-consuming for an adviser to put together for each client.

CIPs, and their common form MPS, have dramatically changed the way that advisers run their business, and many advisers find them helpful in their everyday working life.

melanie.tringham@ft.com

In this guide

CPD
Approx.60min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. According to the first article, which of the following is NOT a function of a CIP that will help advisers comply with the consumer duty?

  2. According to Andy Miller in the second article, CIPs can provide an off-the-shelf investment solution for clients across a range of risk levels and investment styles, true or false?

  3. According to the second article, which of the following is NOT a factor that makes MPSs more appealing to the mass market?

  4. Which of the following is NOT a contribution from the consumer duty, according to the third article?

  5. CIP tools can help advisers evaluate the cost-effectiveness and performance of various funds or portfolios, according to the fourth feature, true or false?

  6. Clients can now have an audit trail for compliance through an encrypted channel, via a CIP, true or false?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Describe the advantages of using a CIP
  • Explain how CIPs work
  • Explain how they fit in with consumer duty

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