GIPS® Standards Pre-Verification Consulting, Verification, and Performance Examination
GIPS® compliance is becoming more essential for firms and asset owners as the financial industry evolves and new business opportunities may require a claim of compliance. Whether your organization already claims compliance and wants to switch service providers, or you are seeking to claim compliance for the first time, FPS is here to provide ongoing support, including year-round continuous consulting.
With FPS, your business can expect comprehensive, customized, and thorough service from our team of professionals. With 25 years of experience conducting verifications, we consider ourselves experts when it comes to GIPS® compliance. When working with FPS, your organization can feel confident in its claim of compliance. Our verification related services include:
- Initial pre-verification services, involving consulting and an assessment of the asset manager’s policies and procedures, ensuring any gaps are addressed.
- Firm-wide verifications which follow a structured timeline and testing tailored to the client. As our signature service line, GIPS® standards verification for firms and asset owners are at the core of what we do.
- Performance examinations done for one or more composite track records, providing additional comfort – often completed for highly marketed strategies
Composite Management Solutions*
FPS’s Composite Management Solutions are a good fit for firms that need additional support meeting performance reporting goals. We will create a custom solution to fit your process and tailor services to the specific circumstances of your firm. FPS can help close the loop on your composite reporting process and assist you with meeting regulatory requirements. Composite Management Solutions are offered under two types of engagements:
Composite Maintenance Services include the following:
- Assistance in the construction of composites and tracking of unassigned portfolios in accordance with the asset manager’s policies.
- Management of composite populations.
- Calculation of composite performance.
- Creation of composite presentations and other marketing materials.
These services can be utilized by:
- GIPS compliant firms
- Firms looking to comply with the related portfolios provisions of the SEC’s Marketing Rule
Solutions are highly customized build outs for firms needing tailored performance calculations such as:
- Account and or composite net of fee calculations
- Recurring analysis of supporting calculations to ensure the model fee used is still proper
- Calculation of net of performance-based fees
- Recurring outlier analysis and review
*Composite management solutions are not available to verification clients.
An FPS Performance Certification is suitable for firms not claiming compliance with the GIPS® standards but desiring a third party review of one or multiple mandates. During an engagement, we provide an independent performance certification of a firm’s strategy and unique track record. All testing is completed to ensure the performance presentation is in accordance with calculation requirements and policies described by the firm.
FINRA IRR Performance Services
In 2020, the Financial Industry Regulatory Authority (FINRA) released a regulatory notice permitting the inclusion of internal rates of return (IRR) when marketing private placements, so long as the calculation is consistent with the GIPS® standards. This opportunity to expand your funds’ marketing requires an auditor report to certify the integrity of the IRR calculation.
FPS will complete an Agreed Upon Procedures engagement that will address all areas of the GIPS® standards that impact the IRR calculation. The deliverable can be shared with the requesting broker-dealer.