How to Comply

Follow these steps to comply with the GIPS standards

How to Comply with the GIPS standards: Learn about the GIPS standards, Analyze your firm's ability to comply, Build (or strengthen) the infrastructure to comply, Implement the requirements, and Stay up to date. 

Learn About the GIPS Standards

Make sure you know how rigorous the Standards are and how your firm will benefit from complying.

  1. Read the GIPS standards
  2. Read the digital edition of the GIPS Standards Handbook or buy a hard copy
  3. Review guidance and interpretations

Analyze Your Firm’s Ability to Comply

Your firm may not be ready to comply with the GIPS standards. If your firm markets to institutional investors, compliance is often required. Even when not, you will find that compliance provides tremendous benefits; and, if you market globally, there are even more reasons to comply.

  1. Evaluate the essentials of compliance. Do you have at least five years (or since the inception of your firm, if the firm is less than five years old) of the data necessary to calculate portfolio-level returns (that is, month-end market values and cash flows)?
  2. Develop a team. In order to comply, you need a firm-wide commitment to invest the time and resources into the project. We generally recommend a team approach to compliance, with representatives from several parts of the firm. It is important that everyone has at least some familiarity with the Standards, including:
    • Legal and compliance
    • Sales and marketing
    • Portfolio management
    • Operations
    • Performance
  3. Review your system capabilities. Firms that comply ideally have the systems resources to make the process go smoothly. You will likely need access to data from several systems to attain compliance. While some firms rely on spreadsheets, you may find it helpful to use software that’s specifically designed for managing composites and assisting with compliance, including:
    • Portfolio accounting
    • Returns calculation
    • Composites

Build the Infrastructure to Comply

A few basics need to be in place before you can start implementing the GIPS standards:

  1. Define the firm
  2. Develop policies and procedures
  3. Construct composites

Implement the Requirements

  1. Prepare GIPS-compliant presentations
  2. Ensure policies and procedures are followed consistently
  3. Monitor compliance on an ongoing basis
  4. Consider verification

Stay up to date with current development

  1. Sign up for the GIPS newsletter
  2. Attend GIPS webinars, conferences, and workshops