An investment policy statement (IPS) is a written document between you and your advisor that sets your goals, target investment mix, risk limits, and the rules for managing and reviewing the portfolio.
A typical IPS covers your objectives and time horizon, how much risk you can take, cash needs, tax situation, any restrictions (such as a cap on company stock), the target allocation with allowed ranges, how and when to rebalance, how performance will be measured, and who is responsible for what. CFA Institute's guidance for individual investors groups these under objectives, performance requirements, risk management, and governance.
Its main value shows up in bad markets. It records the plan you agreed to when things were calm, which makes a panicked change less likely and gives you something concrete to hold an advisor to.
How to check
Ask a prospective advisor whether they write an IPS for every client and to see a sample. Later, check that your actual allocation stays within the ranges it sets.
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