Standard VI(C) – Referral Fees
The following are the key concepts of the GIPS standards that apply to firms:
- GIPS are ethical standards for an investment performance presentation to ensure fair representation and full disclosure of investment performance. In order to claim compliance, firms must adhere to the requirements included in the GIPS standards.
- Meeting the objectives of fair representation and full disclosure is likely to require more than simply adhering to the minimum requirements of the GIPS standards. Firms should also adhere to the recommendations to achieve best practices in the calculation and presentation of performance.
- The GIPS standards require firms to include all actual, discretionary, fee-paying portfolios in at least one composite defined by investment mandate, objective, or strategy to prevent firms from cherry-picking their best performance.
- GIPS relies on the integrity of input data. The accuracy of input data is critical to the accuracy of the performance presentation. The underlying valuations of portfolio holdings drive the portfolio’s performance. These and other inputs need to be accurate. GIPS standards require firms to adhere to certain calculation methodologies and make specific disclosures and the firm’s performance.
- Firms must comply with all requirements of the GIPS standards, including any updates, guidance statements, interpretations, questions & answers (Q&As), and clarifications published by CFA Institute and the GIPS Executive Committee, which are available on the GIPS website (gipsstandards.org) as well as in the GIPS Handbook.
As noted, GIPS compliance is voluntary and self-regulated. Due to the nature of this setup, a strong commitment to ethical integrity is required to maintain GIPS compliance. The GIPS Executive Committee encourages firms to recognize the benefit of self-regulation and consider taking action against firms that falsely claim compliance with GIPS.
Sergio Torrico
2021-07-23
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Escribo esta revisión en español para los hispanohablantes, soy de Bolivia, y utilicé
AnalystPrep para dudas y consultas sobre mi preparación para el FRM nivel 2 (lo tomé una sola vez y aprobé muy bien), siempre tuve un soporte claro, directo y rápido, el material sale rápido cuando hay cambios en el temario de GARP, y los ejercicios y exámenes son muy útiles para practicar.
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2021-07-17
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2021-07-16
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2021-06-28
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2021-06-22
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2021-05-10
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2021-03-24
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2021-03-18
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