Lesson 2 of 4 · 12 min
Who can claim compliance, and the key concepts
Only an organisation that actually manages assets can claim GIPS compliance, it must comply with every applicable requirement across the whole firm, and doing so is voluntary.
In short
- Any firm that manages actual assets may choose to comply. Consultants and software vendors cannot claim compliance (consultants can endorse GIPS or require it of managers).
- Asset owners comply as firms if they compete for business; otherwise they may follow the Standards for Asset Owners when reporting to an oversight body.
- Compliance is all or nothing and firm-wide: comply fully and use the GIPS Compliance Statement, or do not mention GIPS at all.
- Compliance is voluntary and not usually required by law or regulation.
- Key concepts: ethical standards; follow recommendations for best practice; obey Guidance Statements, interpretations and Q&As; standards keep evolving; composites for every strategy; accurate input data and set calculation methods.
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