A new GIPS guidance statement has arrived

There’s a new sheriff in town (in the form of a new GIPS guidance statement), and he’s carrying some seriously new proposed requirements for GIPS(R) (Global Investment Performance Standards) compliant firms who are engaged in the management of “Broadly Distributed Pooled Funds.”

The first question you might have is “what’s a ‘broadly distributed pooled fund?,'” and I’d say that’s a very good question. After all, you’ll want to know if this GIPS guidance statement even applies to you and your firm. Fortunately, the opening paragraph explains that they’re “investment vehicles with broad distribution (i.e., where there is typically no or minimal contact between the firm managing the pooled fund and prospective pooled fund investors).” For example, mutual funds.

I’ve only begun to crack the surface of this rather lengthy (19 pages) document.

If you manage mutual funds or other pooled vehicles that meet the scope of this GIPS Guidance Statement, you’ll want to review and respond!

As with all GIPS guidance statements, the public is given time to review the draft and let the GIPS Executive Committee know their thoughts. And as with many GIPS guidance statements, you’ll find specific questions they’d like your response to. It’s important that you invest the time to review and comment, as the EC will base its decision on the final version on what the public has to say. This GIPS guidance statement can have a big impact on you and your firm, so please take the time to read and respond.

I’m far from being ready to share my thoughts, but will alert you of my views once they’re composed. In the mean time, please get yourself a copy and read it! And, if you feel it appropriate to respond, please do so. Note that the deadline to comment is April 29, 2016.

To get your copy of this latest GIPS guidance statement, please go here!