Investment Policy Statement Drafting and Review Worksheet

This worksheet is used to gather the information needed to draft or update an investment policy statement during a client meeting. It captures objectives, risk tolerance, liquidity needs, allocation targets, constraints, and approval notes in one place. The result is a cleaner audit trail for the IPS process and fewer gaps between what the client said and what the policy says.

It works for both, but the review trigger field makes it especially useful for annual reviews, life-event updates, and portfolio rebalancing discussions. For new clients, it helps establish the baseline IPS. For existing clients, it helps document what changed and why the policy needs to be revised.

An advisor, wealth manager, or relationship manager usually completes it during the meeting, with the client confirming the answers. If your process includes compliance or operations review, they can use the completed worksheet as the source document for the IPS draft. The advisor signature and client attestation fields support accountability.

Use it whenever the client’s goals, time horizon, liquidity needs, or risk profile may have changed. Many firms use it at onboarding and then at scheduled review intervals, but it should also be used after major life events, market shocks, or account changes. The review trigger field makes the cadence explicit.

Yes, it supports documentation discipline by recording consent, meeting date, client attestation, and an audit trail for policy updates. It is not a legal substitute for your firm’s compliance review, but it helps show how the IPS was informed and approved. Keep the content aligned with your firm’s retention and supervision procedures.

Common mistakes include using vague objectives, leaving allocation targets inconsistent with risk tolerance, and skipping liquidity details when the client may need cash soon. Another issue is treating restricted securities or special considerations as optional when they actually affect the policy. The worksheet works best when each field is completed with specific, decision-ready language.

Yes, you can tailor the fields for individuals, trusts, retirement accounts, or institutional clients by adjusting the account type and special considerations sections. You can also add conditional logic for tax constraints, ESG preferences, or concentration limits. Keep the core fields intact so the worksheet still supports a usable IPS draft.

A structured worksheet is easier to review, approve, and audit than scattered notes or email threads. It reduces the risk of missing a constraint, misreading an allocation target, or forgetting to document client consent. It also makes it simpler to turn meeting notes into a consistent IPS update.

After review, the advisor should confirm the IPS status, assign follow-up actions, and route the worksheet into the firm’s documentation or approval workflow. If the client attests to the content, that confirmation should be stored with the meeting record. The next step is usually drafting or revising the IPS based on the completed worksheet.