The ever-increasing focus by the Regulators on the accountability of senior management, particularly when things go wrong, emphasises how important it is for individuals in senior positions to have a clear understanding of what is expected of them. This succinct course is designed to assist Senior Managers to have a full understanding of what they need to do to achieve compliance with the rules under the obligations created by the Senior Managers and Certification Regime (SMCR).
The Global Investment Performance Standards (GIPS®) are a set of voluntary, ethical principles that guide investment firms on how to calculate and present their investment performance.
Firms across the industry are challenged not only by becoming GIPS compliant but also by maintaining such compliance. We can assist your firm with overcoming these challenges by helping build and improve upon your framework for compliance as well as by providing firm-wide verifications and performance examinations.
GIPS compliance by the numbers
According to the ACA and eVestment 2018 Manager and Consultant Survey:
Number of consultants
That expect to require alternative asset managers to comply with the GIPS standards
Number of consultants/investors
that believe more pension funds, foundations, endowments and other asset owners will claim compliance with the 2020 GIPS standards
Number of consultants/investors
that exclude managers from searches some or all of the time if they do not claim GIPS compliance
We assist firms with developing the roadmap and building the framework to claim GIPS compliance. Our pre-compliance consulting addresses:
- calculation methodologies
- policy and procedures development
- composite membership guidelines
- a thorough review of your marketing and advertising disclosures
Our independent verifications are designed to assess whether your firm is adhering to the GIPS standards. Our firm-wide verification services will confirm:
- Whether your firm has complied with all the composite-construction requirements of the GIPS standards on a firm-wide basis
- Whether your firm’s processes and procedures are designed to calculate and present performance results in compliance with the GIPS standards
Third-party verification brings credibility to the claim of compliance and supports the overall guiding principles of full disclosure and fair representation of investment performance. Many asset managers find that consultants and institutional investors require GIPS-compliant firms to be verified before moving forward in any searches.
We provide comprehensive, focused performance examinations of specific composite track records. Our examinations could include:
- Whether composite calculations are in compliance with the GIPS standards
- Whether the composite’s compliant presentation includes all of the required statistics and disclosures of the GIPS standards
A firm cannot claim that a particular composite has been examined unless a performance examination has been completed. A performance examination can only be conducted by a verifier after, or in conjunction with, a firm-wide verification.
Why claim GIPS compliance?
- Provides additional credibility in presenting performance numbers in the marketplace
- Reinforces existing client relationships and opens doors to consultants and potential clients
- Fosters comparability of investment results
- Often required in order to be considered for institutional mandates
- Demonstrates commitment to best practices and industry standards
- Facilitates a solid operational foundation for performance calculation and advertising
Our unique perspective is informed by our real-world experience, deep subject matter expertise, and extensive client network.
As February quickly moves into March, firms are looking to begin or finalize the updates needed for the GIPS Reports so that they can market 2020 performance results. Below is a checklist to help determine if your firm has considered all the items needed to ‘flip the switch’ over to the 2020 GIPS standards.
FINRA's release of Regulatory Notice 20-21 allows the use of IRR for investments or funds that have been fully realized but further requires utilizing the calculation methodologies of the Global Investment Performance Standards (GIPS) for investment programs/funds that include both realized and unrealized holdings.
With less than six months to go until UK investment firms are subjected to a completely new prudential regime, a recent survey reveals that the industry is vastly underprepared. The data shows that just 4% of respondents are ready and capitalised for the FCA’s new Investment Firm Prudential Regime (IFPR) coming into effect in January 2022. Learn more about what this means for firms.
Waters Rankings 2021 Name ACA Group's ComplianceAlpha® Best Anti-Money Laundering Compliance Solution Provider
Our ComplianceAlpha® platform has been named Best Anti-Money Laundering Compliance Solution Provider in the Waters Rankings 2021.
ACA's Regulatory Reporting Monitoring & Assurance (ARRMA) service winner of the 2021 HFM European Technology Awards
Within a year of launching, ACA Group is delighted to announce that our ACA Regulatory Reporting Monitoring & Assurance (ARRMA) service has been selected as Best Regulatory Reporting Solution in the 2021 HFM European Technology Awards.
Senior management in Financial Services firms have a responsibility to ensure their employees have sufficient knowledge and understanding of the Regulatory environment they are working in. This knowledge helps in emphasising the need for compliance with policies and procedures in order to protect the firm and the individual from failing to “do the right thing”.
This course is specifically designed to assist Senior Management in meeting their statutory and regulatory obligations.