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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Effective

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Archived

Effective: 1 October, 2012 - 31 December, 2019

Categories: Alternative Investments

Source: Guidance Statement on Alternative Investment Strategies and Structures

We manage hedge funds with complex fee structures which we normally do not disclose to the general public. Instead we provide individual investors with tailored fee quotes. Do we have to provide the fee schedule in the compliant presentations?

Yes. The GIPS standards require that firms must disclose the fee schedule appropriate to the compliant presentation. The GIPS standards define fee schedule as the firm’s current schedule of investment management fees or bundled fees relevant to the particular compliant presentation. This schedule is typically listed by asset level ranges and must be appropriate to the prospective client receiving the compliant presentation. A firm may tailor the investment management fee disclosure to the individual prospective client.

If the firm does not provide a tailored compliant presentation to each prospective client, the firm must disclose a standard fee schedule and may state that fees for individual clients are subject to negotiation and may deviate from the standard fees.