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 ¶ 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!)