Nine Things to Notice: SEC Examiners’ Focus Areas WHAT HAPPENED? As capital markets shift and the risks to market participants change, so do the focus areas of routine SEC exams. Below are trending items from recent examinations: KEY FOCUS POINTS: Environmental, social, and governance [...]
LIBOR Transition Compliance Risks WHAT HAPPENED? On June 18, 2020, the Office of Compliance Inspections and Examinations of the United States Securities and Exchange Commission (OCIE) announced an exam initiative and issued a subsequent Risk Alert about LIBOR transition preparedness. LIBOR, formerly known as the London Interbank Offered Rate, [...]
Value of the GIPS® Standards The Global Investment Performance Standards (GIPS®) are a voluntary set of principles based on fair representation and full disclosure. There are many benefits of being complaint with the standards and having the claim of compliance verified by an independent verifier. See what the GIPS standards can do [...]
Updates to GIPS Reports in Response COVID-19 Firms claiming compliance with the Global Investment Performance Standards (GIPS®) are required to submit an annual GIPS Report for distribution to prospective clients and investors. However, CFA Institute recommends updating the report on a quarterly or semi-annual basis. Many firms include annual time-weighted returns [...]
Reminder: Annual GIPS® Notification Renewal Due June 30, 2020 Firms and asset owners claiming compliance with the Global Investment Performance Standards (GIPS®) are required to notify CFA Institute of their claim of compliance annually by June 30. The required information is minimal, including: firm or asset owner name; primary and secondary [...]
How GIPS® Compliance Can Help Grow AUM The Global Investment Performance Standards (GIPS®) are voluntary ethical standards for calculating and presenting investment performance based on the principles of fair representation and full disclosure. One of the main reasons why firms choose to comply with the GIPS standards is to gain a [...]
CFA Institute’s Online Resources for Firms Claiming Compliance with the 2020 GIPS® Standards CFA Institute’s website has a great list of resources for firms claiming compliance with the Global Investment Performance Standards (GIPS®). Most items relate to the 2020 edition of the GIPS Standards that was released on June 30, 2019. [...]
GIPS® Standards Provisions Specifically Tailored to Asset Owners Asset owners have always been able to claim compliance with the Global Investment Performance Standards (GIPS®) if they have discretion over their assets. Historically, however, the GIPS standards focused on firms that manage assets for clients and compete for business, making it challenging [...]
What is a GIPS® Standards Verification for an Asset Owner? Verification is a process by which an independent verifier conducts testing of an asset owner on an asset owner-wide basis in accordance with the required verification procedures of the Global Investment Performance Standards (GIPS®). A verification tests whether an asset owner’s [...]
What is a GIPS® Standards Verification for Firms? Verification is a process by which an independent verifier conducts testing of a firm on a firm-wide basis in accordance with the required verification procedures of the Global Investment Performance Standards (GIPS®). A verification tests whether a firm’s policies and procedures for [...]