The time and complexity involved in centralised investment proposition (CIP) design, implementation, monitoring, maintenance and reporting are the key drivers of operational overheating risk, finds research by the lang cat on behalf of Copia Capital Management.
The research, whose findings were published on Friday (6 May), was commissioned by Copia to understand how CIPs work in a typical advice firm and to help advisers ensure their CIP is operating effectively. CIPs are especially relevant, it said, given that they are used by 88% of advice firms, according to the lang cat's State of the Adviser Nation research from Q4 2021. The lang cat spoke with 122 financial advice professionals over January and February this year to find that 97% of them believe CIPs are at risk of becoming unmanageable, given the increased administration for firms of al...
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