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 November, 2012 - 31 December, 2019

Categories: Fundamentals of Compliance

Source: GIPS Handbook, 3rd Edition

The GIPS standards require firms to document their policies and procedures used in establishing and maintaining compliance with the GIPS standards, including ensuring the existence and ownership of client assets, and to apply them consistently. What qualifies as a procedure that will ensure the existence and ownership of client assets?

Only actual, discretionary assets managed by the firm may be included in composites. Performance that is based on model or hypothetical portfolios must not be included in composites. A firm’s policies and procedures might include obtaining custodian statements, broker statements, and trade confirmations and performing timely reconciliations between the firm’s records and the custodian’s and broker’s records. Certain investment types (e.g. limited partnership interests, derivatives, real estate, and private equity) may require alternative documentation to establish the ownership and existence of client assets, as custody and broker records may not exist.

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