Page 26 - FINAL CFA SLIDES JUNE 2019 DAY 1

LOS 5.a: Describe the key features of the 5. The GIPS Standards

GIPS standards and the fundamentals of
compliance.

Key Characteristics of GIPS:

Fundamentals of compliance contain both requirements and recommendations:

Definition of the firm— requirements:

Apply GIPS on a firm-wide basis. Definition of the firm—
recommendations

Firm must be defined as a distinct business unit.
Include the broadest definition of the

firm, including all geographical
Total firm assets include total market value of
discretionary and non-discretionary assets, including offices marketed under the same
fee-paying and non-fee-paying accounts. brand name.

Include asset performance of sub-advisors, as long
as the firm has discretion over sub-advisor selection.

If a firm changes its organization, historical

composite results cannot be changed.