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 February, 2013 - 31 December, 2019

Categories: Fundamentals of Compliance

Source: GIPS Executive Committee

Our firm has a new strategy that we want to market. The composite’s performance started in May 2011, and our marketing people are meeting with a prospective client in September 2011. At the time of this meeting, the composite has four months of history. We prepare compliant presentations with annual returns as of 31 December. Are we required to prepare a compliant presentation for this new composite? How do we meet the requirement to make every reasonable effort to provide a compliant presentation to all prospective clients?

All data required to be included in a compliant presentation, as listed in Section 5.A.1 of the GIPS standards, must be presented as of each annual period end. In this case, the composite does not yet have performance through 31 December; therefore, the firm is not required to prepare a compliant presentation. If a request is made for a compliant presentation for a new composite that does not yet have an initial annual period of performance, the performance for the partial period must be made available. If the prospective client for this strategy is still a prospective client after the compliant presentation is prepared with performance through 31 December, the firm must provide this compliant presentation to the prospective client.