Performance Perspectives Blog

What happens when our firm’s name changes, and we’re “GIPS compliant”?

by | Dec 5, 2011

One of our GIPS(R) (Global Investment Performance Standards) verification clients may be changing their name soon. What is the requirement for dealing with this?

Well, technically there is nothing explicit that I have found which deals with this matter: a quick check of the Q&As turned up nothing, and the Firm Definition Guidance Statement only states that changes in the name alone do not qualify for a firm “redefinition” (which has its own required disclosures).

A name change falls under the broad category of a “significant event,” and requires a disclosure (see ΒΆ I.4.A.14). Our advice: include the date and previous name in the Firm Definition paragraph of all presentations. For example, “Effective January 1, 2012, XYZ Investment Advisors changed its name to ABC Investment Management.” If a merger or acquisition occurred which formed the basis for the name change, include a disclosure about this, too; for example, “Effective January 1, 2012, XYZ Investment Advisors changed its name to ABC Investment Management, as a result of the September 1, 2011 acquisition of XYZ by ABC.”

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