Investment Policy Statement (IPS)
Chapters in this video
- 0:00 The IPS paradox on the Series 65
- 1:01 What an Investment Policy Statement (IPS) actually is
- 2:03 ERISA statute vs DOL expectation: the zero-statute trap
- 3:41 Anatomy of an IPS: objectives, roles, and asset classes
- 4:47 Selection, monitoring, and replacement benchmarks
- 5:07 The double-edged sword: shield or liability
- 6:38 Rapid-fire exam recap
What this video covers
- Why an Investment Policy Statement (IPS) is not legally required by ERISA statute, and the exact language testmakers use to trick you into thinking it is
- How the DOL's prudent-expert duty and exclusive-benefit rule create regulatory expectation without statutory mandate
- The core components inside an IPS: investment objectives, fiduciary roles, permitted asset classes, selection criteria, monitoring benchmarks, and replacement trigger points
- Why quantitative and qualitative benchmarks must both appear in the IPS selection and monitoring process
- How rebalancing guidelines, proxy voting policies, and documentation procedures complete the IPS anatomy
- The double-edged sword: how an IPS demonstrates procedural prudence when followed, but creates fiduciary liability when ignored or left unupdated
- Why drafting a perfect IPS and storing it in a drawer is a direct fiduciary breach on exam day
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Series 65 course also includes adaptive practice questions and spaced-repetition flashcards, free through December 31, 2026.