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.
The GIPS Standards Helpdesk is available for individual questions and typically responds to inquiries within 3 business days.
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ArchivedEffective: 1 November, 2004 - 30 April, 2013Categories: VerificationSource: Investment Performance Council (IPC)
The firm for which I work is almost done with a GIPS verification engagement with an outside verifier. My firm’s management has decided to omit measures of dispersion from composite presentations due to the complexity of the calculations. Our verifiers have agreed to sign a verification report with an “except for” paragraph. They have also stated that as long as we disclose why we have omitted this disclosure that we can still say our composites are presented in compliance with the GIPS standards. Is this correct?
No. The GIPS standards require that a measure of composite dispersion be shown for each year presented. Firms may not omit required information from a “GIPS compliant” presentation and remain “in compliance”. Firms must be in compliance on a firmwide basis and meet all the requirements of the Standards to claim compliance. Firms cannot state they are in compliance “except for” certain provisions. If your firm does not include all required disclosures in a composite presentation, your firm may not claim compliance with the GIPS standards and a verifier cannot issue a verification report.
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