How to Write Investment Policy - (Wiley Trading) by Rocco Dibruno (Paperback)

Book Synopsis

An indispensable resource for every financial service professionals developing an IPS

The Investment Policy Statement (IPS) is one of the most critical documents fiduciaries must draft. For years, ERISA and other industry regulations have governed the guidelines all fiduciaries must comply with when drafting one. But the current climate of corporate scandal and the 2008 global banking crisis have led to increased scrutiny by regulators, prompting firms to take a closer look at the quality and integrity of their IPSs and to take steps to have a rigorous formal process in place for drafting them. Endorsed by the Foundation of Fiduciary Studies, this concise guide provides a rigorous framework and the expert insight, information and guidance you need to guarantee that your IPS is in complete compliance with all ERISA-directed requirements.

• Provides a step-by-step plan for creating a uniform IPS that every advisor in the office can follow
• Defines the duties and responsibilities of all parties involved, while clarifying diversification guidelines and providing methods for keeping costs under control
• Packed with ready-to-use templates, sample forms, letters and other documents, diagrams and other valuable tools, including sample Policy Statement downloadable at the companion website
• Designed to get you quickly up to speed on what you need to know to confidently serve your clients with the highest standards of care and protection

From the Back Cover

"The preparation and maintenance of the Investment Policy Statement is the most critical function a fiduciary performs . . . this compact strategy guide provides advisors and their fiduciary clients with a useful tool that will help them comply with their ERISA-directed requirement."
--Donald B. Trone, CEO (Chief Ethos Officer), 3ethos

ERISA and other guidelines have long required fiduciaries to implement a uni- form process for drafting an Investment Policy Statement (IPS). But historically, enforcement has been lax, leaving companies little motivation to develop a formal practice.

Now, times have changed. Corporate scandals, coupled with volatility in the markets, have generated an increase in complaints, lawsuits and even the possi- bility of government legislation requiring an official IPS. This compact guide will help financial advisors, plan sponsors, money managers and all professional fiduciaries protect themselves, stay in compliance--and stay one step ahead of the government mandate--by putting a simple IPS process in place.

Thornburg Investment Management provides an easy-to-follow framework for producing a well-written IPS based on practices recognized by the Foundation for Fiduciary Studies. In clear terms, he outlines how to . . .

• Define the duties and responsibilities of all parties involved
• Clarify diversification guidelines and keep costs in check
• Identify due diligence criteria for selecting investment options

PLUS: Two Sample Policy Statements are included which can be downloaded directly from the website at: www.thornburg.com/IPS. Both templates make implementing a proper IPS easier and more accurate.

With this thorough guidebook, you can prepare documents that meet all industry standards of compliance and federal regulations with relative ease--every time--while protecting yourself and your firm from liability.

About the Author

Rocco DiBruno is the author of How to Write an Investment Policy Statement, 2nd Edition, published by Wiley.