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: Recordkeeping

Source: GIPS Handbook, 3rd Edition

Our firm has had a catastrophic event that has caused a loss of all records. How will this affect our firm’s ability to claim compliance with the GIPS standards?

If a firm has a catastrophic event that is beyond the control of the firm (e.g., fire, flood, terrorist attack), the firm has options depending on the situation.
If the firm has never claimed compliance with the GIPS standards, it must attempt to recreate the records using third-party information (e.g., custodian records). If the firm is able to recreate the necessary records and is able to satisfy all of the requirements of the GIPS standards, it may claim compliance with the GIPS standards. If the firm is unable to recreate the necessary records, but is otherwise able to meet all of the requirements of the GIPS standards, the firm must wait until it has the minimum five years of history before claiming compliance.

If the firm has claimed compliance with the GIPS standards prior to the catastrophic event, it must attempt to recreate the records using third-party information (e.g., custodian records, verifier records). In this instance, if the firm is unable to recreate the records necessary to meet all of the requirements of the GIPS standards, the firm may continue claiming compliance; however, the firm must disclose the catastrophic event that caused the loss of all of the firm’s records.

It is expected that all firms will implement disaster recovery plans to mitigate the loss of records for any reason, whether it is a catastrophic event beyond the control of the firm or a situation within the control of the firm. All firms are reminded that they must follow all applicable laws and regulations.

Please also see original Q&A