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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1 Result

Archived

Effective: 1 October, 2006 - 30 April, 2013

Categories: Performance Examinations

Source: GIPS Executive Committee

Our most recent firm-wide verification report and performance examination for the Large Cap Composite covered the period from 1 January 2000 through 31 December 2005. We received a Request For Proposal (RFP) asking for our Large Cap Composite performance results from 1 January 2000 through 30 June 2006. The RFP asked whether the Large Cap composite had been independently examined with respect to the GIPS standards. Because we want to be able to say that the composite presentation has been examined for all periods being requested (through 30 June 2006), we would like to have a performance examination completed through 30 June 2006. Must the firm-wide verification report be updated through 30 June 2006 before a performance examination can be completed for the Large Cap Composite for the same time period?

It would be expected that the periods covered by a verification report would be consistent with the period(s) covered by the performance examination. The firm’s best option would be to have both the verification and performance examination updated to cover the requested period, in this instance through 30 June 2006. However, recognizing that there may be limitations to the immediate availability of a verification firm to perform a full verification for the six-month period, there may be unusual and infrequent situations where a performance examination could cover longer periods than the verification. Both the investment management firm and the verifier performing the performance examination would need to consider the firm’s policies and procedures, including the controls surrounding the application of those policies and procedures to the longer period.

If the verifier concludes that they can issue a performance examination report for the period beyond the verification, it should not exceed twelve (12) months beyond the date of the most recent verification report. In the interest of fair representation and full disclosure, both the performance examination report and the composite presentation accompanying the RFP should clearly disclose: (a) the lack of a verification for the specified time period and (b) that the document can only be provided to the prospective client making the request.

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