The Roles and Responsibilities of the Country Sponsor

 

Local market support and competitive pressures will ultimately determine how successfully the GIPS standards will be embraced in different countries and regions around the world. The presence of a local sponsoring organization for investment performance standards is essential for their effective implementation and ongoing operation within a country. Such country sponsors also provide an important link between the GIPS Executive Committee (EC), the governing body for the GIPS standards, and the local markets in which investment managers operate. Country sponsors need to ensure broad local representation and inclusivity, so all interested parties are permitted the opportunity to participate at the local level.

 

The EC has formalized a process by which the country sponsor and its adoption of the GIPS standards will be reviewed and assessed for endorsement by the EC. It is therefore important to clarify the role that the country sponsor will take in contributing to and interfacing with this process. The following guidelines endeavor to answer some frequently asked questions with regard to country sponsors and to outline  the particular responsibilities and functions required of GIPS country sponsors.

 

Who typically acts as a country sponsor?

Country sponsors have tended to be a local association representing fund managers, pension funds, or professional societies (e.g. banking or asset management associations, financial analysts associations, CFA Institute societies), or a joint undertaking between these associations. One of the objectives of country sponsors, invariably similar to that of the EC and CFA Institute, is to advance the interests of the local investment community by establishing and maintaining the highest standards of professional excellence and ethical integrity in regard to the calculation and reporting of performance information.

 

What are the responsibilities or functions of a country sponsor?

As a general rule the most likely responsibilities accepted or functions undertaken by the country sponsor of investment performance standards fall into the following categories:

 

Within the country:

 

  1. Nominate a representative to serve on the Regional Investment Performance Subcommittee (RIPS) and GIPS Council who is responsible to voice local issues and concerns and serve as a conduit between GIPS Council and country sponsor

 

  1. Promulgate locally GIPS standards and maintain their integrity

 

  1. Provide local market support for the GIPS standards by:
    • Encouraging local investment managers to comply
    • Enhancing public awareness
    • Seeking support from all investors in particular to endorse compliance
    • Determining the need for, developing the contents of, and delivering educational programs for local markets

 

  1. Determine whether translations of the GIPS standards, guidance statements, and/or interpretations would be beneficial and if so, undertake the process in accordance with the country sponsor Agreement and the Adoption Guidelines (documents available by contacting the GIPS Helpdesk). Ensure, as far as possible, consistency in the application of the Standards due to language differences

 

  1. Provide interpretation and support to answer local-specific, historical standards issues

 

  1. Actively cooperate with the EC to market the GIPS standards within the country

 

  1. Ensure appropriate local market expertise or issues (i.e. clients, consultants, verifiers, plan sponsor, software, etc.) are represented within the country sponsor committee

 

  1. Own and protect the GIPS Standards Translated Materials