Discuss how private clients differ from institutional ones and draft a suitable investment policy statement for a private client

Private clients differ in having shorter or life-linked horizons, goals such as retirement, education or bequests rather than defined liabilities, individual tax situations, less formal governance and behavioural biases; institutions have committees, regulatory oversight and often explicit liabilities. An investment policy statement for an individual sets out background and goals, return objective, willingness and ability to take risk, time horizon, liquidity, tax, legal and regulatory constraints, and unique circumstances such as concentrated holdings, then the strategic allocation, rebalancing and review. When writing return and risk objectives, reconcile willingness and ability; where they conflict, the lower usually governs, though a client whose willingness lags their ability may be educated. A trap is copying institutional language that ignores taxes and life events.