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 March, 2006 - 31 December, 2019

Categories: Definition of the Firm

Source: GIPS Handbook, 2nd Edition

Company C manages money for both retail and institutional clients. There are two autonomous group within Company C: “Company C Institutional Investment Management,” which manages institutional assets, and “Company C Retail Investors,” which manages retail assets. How should Company C define itself as a firm to comply with the GIPS standards?

The GIPS standards encourage firms to adopt the broadest, most meaningful definition of a firm. Company C should consider defining itself to include the assets managed by both the institutional entity and the retail entity for the purposes of claiming compliance with the GIPS standards. However, Company C could define the two autonomous entities as separate firms if each subsidiary is held out to clients and potential clients as a distinct business unit.