The Ultimate Guide to
The 2020 GIPSⓇ Standards
About this Guide
Part II - Draft for Verifiers
About this Guide
This is the second in a three-part series on the 2020 GIPS® Standards. The GIPS Executive
Committee (EC) decided to introduce the proposed changes in two parts. We addressed the changes to the first part, which is quite lengthy, in Part I. This part deals with the proposed changes for verifiers; this is a much shorter document.
As mentioned in part I, part III covers the final version of the 2020 GIPS standards, and is expected to be published by July 31, 2019.
Who Is This Guide For?
To put it simply, anyone who works with, complies with, or is thinking of complying with GIPS standards can benefit from reading this guide. Those who are most effected by the proposed changes are firms and institutions who claim, or plan to claim, compliance. But even consultants, verifiers, and other industry participants who are aware of and care about these Standards will want to take the time to study this guide.
Table of Contents
What is Verification
A Brief History
It’s fair to say that verification, like the Standards1 themselves, got their start with the Financial Analysts Federation’s (FAF) initial draft of presentation standards that appeared in the Financial Analysts Journal.
What is a Composite Examination
Composite examinations are like audits: they are done to validate the accuracy of a given compliant presentation. The firm can opt to have none done, have them done for selected composites, or have them done for all composites
What is Being Proposed?
The exposure draft details major changes to the verification process. A simple way to see this is the number of pages that are devoted to it. The current version of the Standards have roughly four pages on
verification; the proposed language is roughly five-times as much, numbering approximately 20 pages.
Our Thoughts on The Exposure Draft
Rather than recreate our thoughts, the following is the content of our comment letter.6 Thank you for the opportunity to comment on the Exposure Draft of the 2020 Global Investment Performance Standards (GIPS®) for Verifiers. I apologize for being so tardy in responding.
What Can You Do?
Well, at this point, very little.
The deadline to comment was 31 December 2018. We encouraged firms to both review the exposure draft and to comment, but very few did.