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.

1 Result
  • Archived

    Effective: 1 November, 2012 - 31 December, 2019
    Categories: Assimilating Assets
    Source: GIPS Handbook, 3rd Edition

    Previously, our firm was a department within a larger organization.  Recently, the department was able to complete a buy-out, and we are now an independent investment advisor.  What must the firm do in order to continue the claim of compliance?

    A firm’s definition reflects how it holds itself out to the public.  As the department was previously within the larger organization, if the department claimed compliance as a separate firm without the parent organization being included in that firm definition, there may not need to be any changes.  The department may have been and may continue to be a distinct business entity held out to the public as such.  It may be necessary for the department to disclose the buy-out as a significant event because firms must disclose any significant events that would help prospective clients interpret the compliant presentation.
    However, if the department and parent organization were historically combined in the same firm definition for purposes of claiming compliance, the definition of the firm has changed with the buy-out and the claim of compliance with the GIPS standards must be reevaluated.