Centralised Investment Proposition (CIP) Creation

Hi all,

I've been asked to start looking at putting the bones together of a CIP for our firm.

Has anybody got any experience of this and have any documents or tips to share?

Thanks in advance.

Ryan.

Comments

  • Hi Ryan - big subject! PROD provides the regulatory context - you need to think about the differing needs of your client base and work out what investment solution would be suitable for each different segment. To take an obvious example, a client with no capital wanting to save a regular monthly sum will need a completly different solution to (for example) someone who wants to invest a substantial inheritance. Chris Davis wrote a good intro at https://www.professionaladviser.com/professional-adviser/opinion/3061685/chris-davies-why-proding-your-clients-is-a-good-thing, but there are lots of other articles out there.

    Once you have segmented your client base and thought about the differing needs of each segment you can then design different solutions for each segment. PROD requires you to undertake research and due diligence on the products and providers to ensure the recommendations are appropriate - and then monitor them on an ongoing basis to ensure the recommendations remain suitable. There are a number of research tools if you're simply using a platform - I'm sure lots of folk on here will share their recommendations. If you plan to use a discretionary investment manager (DFM), then DD|hub (http://ddhub.co.uk) (PowWow Supporter!) is free to use for DFM due diligence.

    Hope this helps get you started!,
    Chris

  • Hi Chris,

    Thank you for your thorough response, seems like a mammoth task just getting started on a CIP and now I've started reading about a CRP as well which seems to be more complex again.

    The firm I work for is a SimplyBiz member so use Defaqto's Centra system for Product, Provider and Platform research. Going to take some time and research/think of some ways to segment our client base and go from there.

    If someone has templates or a document to work through, it would be of great help!

    Thank you again Chris.

  • JonaJona Member
    edited August 15

    @Rcaisley we toyed with this one too, but the weight of the undertaking initially and ongoing put us off in the end. We felt we did not have the time and resource to pay the necessary attention to it and regulatory burden and impact that could therefore ensue. PROD was pretty much the end of the matter for us.

    There are plenty of firms out there you can buy this sort of thing in from at a very reasonable cost and whose sole being is to focus on the best CIP they can offer in a compliant way. With the good ones you would also get more resources for you and your clients than you can shake a stick at.

  • Hi Chris,

    If you use SimplyBiz they should be able to provide you with lots of material and guidance to help you put the CIP together?

    We use Threesixty and they have some excellent guidance and template documents.

    Cheers

    Alex

  • @alex_lannin said:
    Hi Chris,

    If you use SimplyBiz they should be able to provide you with lots of material and guidance to help you put the CIP together?

    We use Threesixty and they have some excellent guidance and template documents.

    Cheers

    Alex

    SimplyBiz tried selling us one of their 'approved providers' CIP package. We were quoted around £4,000 for a team to come to the office for a day and set this up for us. Putting all templates into the new Centra system etc.

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