Here are some of the questions frequently asked by our clients.
Q.: What requirements must a verifier meet in order to be able to perform a GIPS verification?
Any third-party that is knowledgeable about the Standards, investment performance measurement, portfolio accounting, and investment management and is independent from the investment management firm may perform a verification.
We (EVIV Group) also suggest that you find a Verifier who has attained the CIPM® (Certificate in Investment Performance Measurement™) designation, which "...certifies a practitioner's proficiency in applying analytical techniques and preparing Global Investment Performance Standards (GIPS®) compliant presentations…" (CFA Institute Magazine, March/April 2007, page 22). Joseph T. Emil Vassenine was one of the first 100 Canadians who passed the CIPM® exam. (For more information, please visit www.cfainstitute.org/cipm.)
Q.: How to choose a Verifier?
A.: We helped to develop a more robust, 1 page list of recommended questions to ask a verifier before hiring them - click here to view. For a general list developed by the GIPS Committee, visit www.gipsstandards.org.
Q.: Is an RFP considered an advertisement or a presentation?
A.: RFPs and consultant questionnaires are not considered advertisement and should be treated as a one-on-one presentation to a prospective client.
Q.: Does GIPS Compliance Firm required to disclose its compliance on the website?
A.: NO, but if Firm decides to market its GIPS Compliance on the website it must follow Advertising Guidelines on GIPS.
Q.: Should firm group seg. accounts and polled Funds into the same composite?
A.: If pooled fund’s performance is calculated using NAV, it is recommended to place pooled fund in its own composite.
Q.: Must Firm provide an updated GIPS Compliant Presentation to its existing clients?
A.: NO, Firms is not required to provide an updated GIPS Compliant Presentation to its existing clients, but it would be recommended in the spirit of the best practices. Also, Firm might choose to become compliant with CFA Institute published Principles Effective Investment Reporting.