Page 45 - CFA - Day 1 & 2 Course Notes
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LOS 5.a: Describe the key features
of the GIPS standards and the 5. The GIPS Standards
fundamentals of compliance.
Firm fundamental responsibilities—requirements:
Firms must provide a compliant presentation to all prospects (prospect must have
received a presentation within the previous 12 months).
Provide a composite list and composite description to all prospects that make a
request. List discontinued composites for at least five years.
Provide, to clients requesting it, a compliant presentation and a composite description
for any composite included on the firm’s list.
When jointly marketing with other firms, if one of the firms claims GIPS compliance,
be sure it is clearly defined as separate from noncompliant firms.
Firms are encouraged to comply with recommendations and must comply with all
requirements. Be aware of updates, guidance statements, and the like.
