What's in a CIP?

Tips on the design and delivery of a CIP with PROD regulations in mind

December 2021

Graham Finlay

Vice President, Strategic & Technical Sales

LEARN MORE ABOUT THE AUTHOR

59 MINS STRUCTURED CPD

Subscribe to our Insights

Risk Disclaimer

This content is directed only to persons having professional experience in matters relating to personal investment (investment professionals) and should not be distributed to anybody else. It has been prepared for general information purposes only. It does not constitute advice (whether investment, legal, regulatory, tax or otherwise) provided by BMO Global Asset Management (EMEA) (BMO). Certain content in this document is based on our own reading of legislation, regulation, or guidance issued by a government or regulatory authority, as at the date of publication, which is subject to ongoing change. Tax treatment is based upon individual circumstances. BMO gives no warranty or representation, whether express or implied, that such content is up to date, complete, or accurate.

Investment professionals in receipt of this document should not rely on any of its content. They remain solely responsible for advising their underlying clients in accordance with their own legal and/or regulatory obligations and for taking their own independent advice as they determine is necessary.

To the extent lawful, BMO excludes all responsibility and associated liability for any loss or damage suffered by any recipient of this document who chooses to rely on its content, whether occurring in contract, tort (including negligence), breach of statutory duty, or otherwise, even if foreseeable.

Key takeaways:

  • Gain a broad understanding of what Centralised Investment Propositions (CIPs) are and why advisers might consider them
  • Understand the benefits and risks of a CIP
  • Understand the importance and value of PROD when designing, building or reviewing a CIP

Since the introduction of the Retail Distribution Review, we have seen an explosion in the use of Centralised Investment Propositions (CIPs). In fact, research indicates that 90% of advice firms now have a CIP and of those that do, around 80% of all new assets will be placed within it.

However, with PROD regulations coming quietly into force with MIFID II, advice firms may need to re-think their approach to key elements of their proposition to ensure they are continuing to deliver consistent client outcomes. Graham Finlay shares practical ideas and suggestions on the design and delivery of the CIP, with PROD regulations in mind.

BMO Adviser Edge Whats in a CIP

Risk Disclaimer

This content is directed only to persons having professional experience in matters relating to personal investment (investment professionals) and should not be distributed to anybody else. It has been prepared for general information purposes only. It does not constitute advice (whether investment, legal, regulatory, tax or otherwise) provided by BMO Global Asset Management (EMEA) (BMO). Certain content in this document is based on our own reading of legislation, regulation, or guidance issued by a government or regulatory authority, as at the date of publication, which is subject to ongoing change. Tax treatment is based upon individual circumstances. BMO gives no warranty or representation, whether express or implied, that such content is up to date, complete, or accurate.

Investment professionals in receipt of this document should not rely on any of its content. They remain solely responsible for advising their underlying clients in accordance with their own legal and/or regulatory obligations and for taking their own independent advice as they determine is necessary.

To the extent lawful, BMO excludes all responsibility and associated liability for any loss or damage suffered by any recipient of this document who chooses to rely on its content, whether occurring in contract, tort (including negligence), breach of statutory duty, or otherwise, even if foreseeable.

Bank your CPD

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