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 January, 2006 - 30 November, 2013

Categories: Wrap Fee Portfolios

Source: Guidance Statement for Wrap Fee/SMA Portfolios

The Standards require the disclosure of a fee schedule that is appropriate to the presentation. As an investment management firm managing wrap fee/SMA portfolios, we maintain a fee schedule that is between us and the SMA sponsor. The SMA sponsor has a fee schedule that is between the SMA sponsor and the end client. Which fee schedule should be presented?

In all instances, if the composite presentation will or may be presented to a prospective client that is an end user of investment management services, the appropriate fee schedule to present is the one that reflects the total wrap fee that will be charged by the SMA sponsor to the end user.
If the composite presentation is provided only to a prospective SMA sponsor (and will not be used to market to an end user), the fee schedule may reflect the investment management firm’s portion of the total wrap fee (the fee schedule between the investment management firm and the SMA sponsor). Additional information about other fee schedules may be presented as supplemental information.

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