Performance Perspectives Blog

10 Steps to GIPS Compliance

by | May 31, 2012

The Spaulding Group’s latest book, The Spaulding Group’s Guide to the Performance Presentation Standards (Spaulding, Simpson & Schneider) includes 10 steps for firms to achieve compliance with GIPS(R) (Global Investment Performance Standards). I thought I’d share them with you:

  1. Read the book (the book being the Standards themselves, but our new book can’t hurt, either!)
  2. Assign responsibilities
  3. Define the firm
  4. Define the composites
  5. Develop policies & procedures
  6. Assign accounts to composites
  7. Get your records in order
  8. Put it all together
  9. Prepare marketing materials / disclosures
  10. Get checked out (both internally as well as with the help of an independent verifier (i.e., get a verification done!).

That’s it! Can it be any simpler?  J

Of course, it’s not simple, and for many firms, some steps may require a great deal of effort. We typically begin our verification assignments with a “pre-verification,” which includes a “mini” GIPS class, to help orient the firm. We also provide them with our new “GIPS Orientation Kitâ„¢.” For most firms, compliance is worth the investment!

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