Performance Perspectives Blog

GIPS Portability: what does “one year” mean?

by | May 1, 2012

The Global Investment Performance Standards (GIPS(R)) have provisions to accommodate firms and individuals that move their skills from one place to another. For example, the emerging markets team from Firm A decides to either set up shop themselves or move in with Firm B. Or, if Firm X acquires or merges with Firm Y.

We find the following in ΒΆ I.5.A.8.b: “If a FIRM acquires another firm or affiliation, the FIRM has one year to bring any non-compliant assets into compliance.” What does this mean?

One sentence just isn’t enough to explain what a firm is obligated to do. I have had many discussions on this topic, and have found very different views. In April’s newsletter (which is admittedly late (“my bad”), but will appear very shortly), I provide my views on this matter. I welcome your comments, be they in support, in opposition, or simply if you have further questions on this important matter. Please email them to me. Or, post a comment below! Thanks!

Oh, and this topic will also be the subject of The Spaulding Group’s monthly webinar (date & time TBA!)

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