There has been much discussion and concern by the FSA in the UK about caution in the appropriateness of developing centralised investment propositions (CIPs) and ‘shoe horning’ investors into such.

Whilst at face value this seems to be a reasonable concern to protect investors being put into CIP schemes largely set to meet the approximate needs of a customer segment, or investors with a category of risk profile, rather than the investor themselves, a number of questions come to mind:

Q1) how is this different from placing investor monies into specific investment products that are managed to a set mandate as opposed to an investor’s specific situation (see earlier post on this BLOG about need for individual portfolios) ?

Q2) what if the CIP was flexible enough to accomodate the individual circumstances, needs and plans of the investor, resulting instead in a very personalised, but centralised investment process ?

In relation to Q2, should this be available and viable? (This is the core of the Financial Simplicity capabilities). Then wouldn’t it be very much ‘right’ for the investor? It would also be a positive to encourage participation in the CIP and ‘shoe horn’ investors into it.