Page 29 - FINAL CFA SLIDES JUNE 2019 DAY 1

5. The GIPS Standards
LOS 5.b: Describe the scope of the GIPS
standards with respect to an investment firm’s

definition and historical performance record.

GIPS compliance must be firm-wide, where the “firm” is the distinct business entity (the
corporation, subsidiary, or division -geographically) that is held out to clients and prospects.

A firm’s initial GIPS-compliant historical performance record must include a minimum of five
years of historical data, or since firm or composite inception. After the five years has been

achieved, the firm must add one additional year of performance each year, up to a minimum
of 10 years.

Non-GIPS-compliant information may be linked to compliant history, but no noncompliant
performance can be presented after January 1, 2000. Firms must clearly identify the

noncompliant portion of results.