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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Current

Effective: 1 July, 2021

Categories: Portability

Source: GIPS Standards Technical Committee

We ported a historical track record from a firm that we acquired. At the time that we ported the performance, we met all of the criteria to allow us to present the performance from the acquired firm as part of our firm’s track record. Now, two years after the acquisition, the key investment decision maker who was responsible for the historical track record has left the firm. Do we have to stop using the history from the acquired firm?

When a key investment decision maker leaves the acquiring firm after the acquisition, the acquiring firm can still use the acquired firm’s historical track record as long as the decision-making process remains substantially intact. The key investment decision maker would need to stay with the acquiring firm for long enough after the acquisition so that those remaining investment decision makers have enough knowledge to be able to continue managing the portfolios in the composite according to the intended strategy. If the key investment decision maker stayed with the acquiring firm for only a brief period of time, the departure would call into question whether an adequate transfer of knowledge took place to allow for the continuity of the composite strategy. Firms must determine if a key investment decision maker’s departure qualifies as a significant event that must be disclosed.

Q & A Database

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