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.

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Archived

Effective: 1 January, 2014 - 31 December, 2019

Categories: Error Correction

Source: GIPS Executive Committee

According to the GIPS Guidance Statement on Error Correction, if we have a material error and correct a compliant presentation, we must make every reasonable effort to provide the corrected compliant presentation to all prospective clients and other parties that received the erroneous compliant presentation. We provided the erroneous compliant presentation to former prospective clients that did not hire us and are no longer interested in hiring us. Are we required to provide the corrected compliant presentation to former prospective clients that are no longer considered prospective clients?

No. A firm is not required to provide a corrected compliant presentation to former prospective clients that did not hire the firm and are no longer considered a prospective client. If a firm wishes to differentiate between current prospective clients and former prospective clients that no longer qualify as current prospective clients, the firm must establish procedures to determine when a prospective client no longer has an interest in or no longer qualifies to invest in the composite strategy in question and therefore no longer is considered a prospective client for that composite strategy. If a firm is not able to differentiate between prospective clients and former prospective clients, the firm must send the corrected compliant presentation to both groups.

Please also see original Q&A