Guidelines and Procedures Manual Flashcards
PPM is about ….
the long-term stewardship of client wealth
PPM is a …
Personalised advice discretionary investment management service designed to meet stated client investment objectives.
PPM intends to be cost effective …
so that a client more than recovers costs through satisfactory LT performance
Under PPM advisers take on the responsibility of managing investment portfolios under
An investment Authroity
within the limitations of an asset allocation
with approved securities and
other compliance procedures
The PPM management style can be described as …
Long term management of and preservation of Client wealth. The focus of which is the minimization of risk through prudent and careful management.
One important characteristic of the PPM service is ….
Personalised interaction with and attention to the needs of the individual /client
PPM advisers make decisions based on …
A client’s circumstances and investment risk profile
established and regularly review investment objectives
guidelines and procedures specific to PPM
PPM advisers in addition to their responsible under the investment authority need to be :
-Properly aware of the clients changing needs and expectations
-The degree to which individual clients can tolerate potential consequences of portfolio risk
-Implement a consistent and rational strategy upon which transaction are based
Maintaining an appropriate asset allocation is a fundamental portfolio management discipline that precedes
individual security selection
Client Specified must not arise from …
An adviser’s advice or endorsement of an alternate asset allocation
From the 1st September 2017 - client may only specify that adviser invest in ….
One particular asset class.
in addition to this single asset class the portfolio may also hold cash to a max of 10% of total market value.
Advisers may not promote non approved securities to clients …
then request the client sign an authority to hold those securities
The level of risk tolerance for each client is determined in one of ….
four categories when the account is opened ( as evaluated in the CP)
As a rule of thumb, best practice is to weight the security/ sector up to ….
half the upper limit
The purchase of a non-approve security is an ….
immediate breach of the investment authority
The transfer of a non-approved security into a portfolio will become a breach …
3 months from the date of transfer.
The non-approved security must be sold or transferred out by the actionable date.
The record of PPM transaction decisions provides ….
a permanent record and is a valuable practice in confirming the suitability of each transaction in reference to sound portfolio management principles and the investment objectives of the client.
What is the minimum number of advisers (advisers who are jointly coded to manage PPM accounts) required for an LIC?
Four
What are the minimum requirements for an LIC ?
Meeting fortnightly (24 a year)
Completion of the meeting template app and peer review template
Ensuring that the meeting notes and peer reviews are reviewed as part of the agenda of the subsequent LIC meeting.
How many peer reviews is an adviser required to complete per year?
12
What is best practice with respect to new account documentation?
Work through all pre-account documentation in person with the client. As this allows for explanation, clarifications and is consistent with the personal service standards for PPM clients
What are the recommended service standards for PPM accounts?
visit new clients to personally review first and perhaps second reports
personalise quarterly reports
See clients at least annually, for review
Initiate 6 monthly phone calls
Asset allocation is intended to …
manage the underlying market and sector risk prior to the security selection process
Reference strategy names