When properly drafted and followed, an Investment Policy Statement (IPS) can be a valuable tool to assist plan fiduciaries in managing and mitigating investment-related risk.
By outlining the process that a plan’s fiduciaries will follow, the IPS will allow the plan’s fiduciaries to follow a consistent process over time that will
streamline decision-making.
The key, however, is a properly-drafted IPS that avoids the pitfalls which may lead to litigation traps.
For a review of what you should and should not include in your IPS, download our review guide.