Q & A Database

The GIPS Standards Q&A database contains questions and answers (Q&As) on various searchable topics that provide additional interpretation on an issue. Q&As are considered to be authoritative guidance and must be followed in order to claim compliance with the GIPS standards.

Content from prior Q&As was included in the GIPS Standards Handbook as much as possible and many Q&As were archived. Change the Status drop-down filter to "Archived" to see the archived Q&As.

The GIPS Standards Helpdesk is available for individual questions and typically responds to inquiries within 3 business days.

Search by category, status, date range, and/or keyword.

Category

Advertising Aggregate Method Alternative Investments Asset Owner Assimilating Assets Benchmarks Calculation Methodology Carve-Outs Cash Cash Flow Changes to the Standards: 2006 GIPS Client Reporting Client Updates Composite Calculations Composite Changes Composite Construction Consultant Questionnaires Corrections to the 2006 GIPS standards Creation Date Currency Definition of the Firm Disclosures Discretion Dispersion Early Adoption Effective Dates Error Correction Fees FINRA Firm Assets Firm Notification Requirement Fixed Income Fundamentals of Compliance General/Miscellaneous GIPS Reports Inception Date Incubator Funds Information Outside of GIPS Reports Leverage/Derivatives List of Composite Descriptions Lists of Composites and Pooled Funds Minimum Asset Level Model Results New Portfolios/Accounts Non-fee-paying Portfolios Overlay Strategies Partial Period Returns Performance Examinations Performance History/Track Record Pooled Funds Portability Private Equity Providing GIPS Reports Real Estate Recordkeeping Risk Securities Lending Sub-Advised Assets Sub-Advisors Supplemental/Additional Information Terminated Portfolios Total Asset Owner Assets Total Fund Definition Trade-Date Accounting Valuation Verification Wrap Fee Portfolios

Status

Organization Type

Effective

Keyword

1 Result

Archived

Effective: 1 May, 2001 - 31 December, 2013

Categories: Portability

Source: Investment Performance Council (IPC)

Manager A previously worked for Firm X that was not compliant with the GIPS standards. Manager A left Firm X and was hired by Firm Z. Firm Z and Manager A are satisfied that the situation meets all the rules of portability. Can Manager A’s performance history at Firm X become compliant or can it not be used because it is non-compliant?

To clarify, the performance history can never become “compliant.” Compliance with the Standards can only be achieved on a firm-wide basis. If the manager (or management team) satisfies all the requirements of the Guidance Statement on Performance Record Portability (including bringing all the supporting documentation and records to Firm Z), then Firm Z can use the records to construct a composite history that can be used. As provided in the Guidance Statement on Performance Record Portability, the important determinant of allowable performance record portability is not a firm’s former compliance with the GIPS standards but whether the acquiring firm continues the original strategy that defined the composite with all of its continuing factors. Most cases will not meet all of the portability requirements, in which case the past performance record of the manager cannot be linked to the ongoing performance record of the firm. The past performance record of the manager can be presented as supplemental information when relevant. Please note one of the rules of portability requires that the staff and decision-making process remain intact and independent at the new firm. If the investment process is somehow changed, or if the investment staff changes, the historical records of the new manager can only be presented as supplemental information and cannot be linked to the ongoing record of the firm.

Please also see updated Q&A