Centralised Investment Proposition

Centralised Investment planning CIP
It’s not practical or cost-effective to look at the whole market for each and every client, starting from scratch. A Centralised Investment Proposition (CIP) is your consistent and repeatable investment process.

It sets out your default investment option for any given segment of your client bank. Then it’s simply a case of checking and demonstrating that’s the most suitable option. Your CIP won’t be right for every client, but much of the time, it will.

Whether you pick funds yourself, buy third party research, use multi-asset funds, model portfolios or other options, your CIP needs to be well researched and reviewed. This is where we can help.

What are the main considerations?

We provide Suitability Reports covering all areas of advice except Defined Benefit Pension Transfers. Our services cover new and replacement business, including:

Some of the main considerations are:

  • What services do you offer?
  • How have you segmented your clients?
  • What features do these clients need?
  • How often do you carry out client reviews and does the CIP fit with this?
  • Do you pick individual funds or use outsourced investment options?
  • What are your investment philosophies; e.g., active or passive funds? Value or growth?
  • Do the options under consideration present value for money?
  • Can a similar solution be achieved at lower cost elsewhere?
  • Is the solution flexible enough to cope with changing client circumstances?
  • Do the offerings map to your risk profiling tool?
  • Is accurate and up-to-date performance data available?
  • What’s the legal basis of any relationship with a Discretionary Fund Manager?
  • Do the solutions you’ve chosen meet the needs of the client segments identified at the start of the process?
  • Do you have buy-in from your team, so there’s consistency across the business?
  • Have you evidenced all this for the regulator?

Case Study

Setting up a CIP

One of our clients needed help with his advice process, as he was looking to the whole market for each client, considering everything from lifestyled funds to bespoke DFMs. We discussed the typical needs of the client segments. We also asked the adviser for their views on a number of different aspects of investing, which gave us the filters we needed for the next step.

We then used various tools, including FE Analytics, to produce a shortlist of options. We discussed this with the adviser, whose views shaped the final selections. This was written up into a document to evidence the process, to be updated each year.

The Argonaut Approach

We provide outsourced paraplanning services including pension switching research, analysis and suitability reports.

Is your investment proposition in a bit of a muddle?
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