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: Consultant Questionnaires

Source: GIPS Handbook, 3rd Edition

Consultant questionnaires often require managers to fill in quarterly performance charts. The questionnaires then ask the manager to indicate whether or not the numbers presented in the chart have been prepared in accordance with the GIPS standards. How should a firm respond to these questions?
To claim compliance, the firm must meet the requirements of the GIPS standards on a firm-wide basis. Presentations claiming compliance must meet each requirement of the GIPS standards including disclosure requirements. Performance results cannot be “in compliance” unless all the requirements of the GIPS standards are met. Questions regarding whether returns “are prepared” in compliance with the GIPS standards demonstrate a misunderstanding of the meaning of being in compliance with the GIPS standards. However, a firm that claims compliance with the GIPS standards may state that the returns “are prepared in compliance with the GIPS standards” if the following conditions are met:
- the performance information used to complete the questionnaire is consistent with the information used to prepare the respective composite’s compliant presentation; and
- if applicable, the performance information used to complete the questionnaire is more current than the information currently included in the respective composite’s compliant presentation but will be used in the future to update the respective composite’s compliant presentation; and
- if applicable, the performance information used to complete the questionnaire is older than the information currently included in the respective composite’s compliant presentation, but could be used to report the composite’s performance for periods prior to those currently included in the compliant presentation.
In all cases, firms must take steps to ensure that the information provided is not false or misleading. The firm must provide a compliant presentation to the consultant at the time of completing the initial questionnaire and, at a minimum, every 12 months thereafter.

Please also see original Q&A