What is an Exposure Draft

While the CFA Institute “owns” the GIPS standards, they have created an Executive Committee (EC), as well as several subcommittees, to administer the Standards.

The CFA Institute also has employees who work with these groups and handle much of the “heavy lifting” one would expect with such an important document. This includes the “GIPS Help Desk,” that responds to inquiries about the Standards.

The investment professionals who serve on the EC, as well as the subcommittees, are highly competent, experienced, and knowledgeable about investment performance and the GIPS standards. And while they may have ideas to improve the Standards, they also recognize that especially with a global standard, there may be differences of opinion.

And so, they will issue an “exposure draft” whenever a revision to the Standards is being done, as well as for new and revised guidance statements.

The public is typically given 60 or 90 days to review what is being proposed. They are given the opportunity (and are encouraged to) comment on what is being offered. Comments are posted for public view.

In addition, to accommodate those whose organization doesn’t want to be identified, or perhaps they themselves don’t want to be identified, they will be allowed to comment anonymously. Furthermore, they can direct the EC not to publish their comments.