GIPS Compliance - Its Requirements and Significance
The GIPS Verification is the evaluation of an investment management company’s performance measurement procedures by a self-governing 3rd party verifier. This method examines if the company has complied with the composite construction requirements of GIPS standards. Through this, they will know if a certain company is effective or not. It also test the policies and methods of the company. With this, they will know if the company’s policies are intended to compute and present performance in compliance with the GIPS standards. This GIPS verification is another case of a standard that is recommended but not absolutely required to comply with the GIPS. If a test question points out that a company has not yet undergone the verification procedure, it doesn’t mean that it is not GIPS compliant.
It is noted that every company has distinct challenges to manage when considering GIPS verification. This GIPS verification offers countless advantages. Third party verification provides additional integrity to the claim of the compliance. It also sustains the entire guiding principles of the GIPS standards.
Fixed Income Performance Attribution
Verification may also offer an excellent opportunity to every company. It boosts the ideas of the company’s complaint presentations. Additionally, GIPS verification may offer advanced internal procedures and advertising benefits to the company.
The GIPS verification is made to provide company with additional confidence due to the firm’s claim of compliance. It is also designed to the company’s current and possible clients. With a company’s verified status, there will be a market-driven result of increased awareness among consultants and investors and can be an essential factor in manager searches. Upon knowing the importance of GIPS verification, you probably want to look for the best company that can answer your needs. Whether you opt to begin the compliance framework or opt to understand the entire compliance verification method, you don’t need to be anxious because there are countless agencies you can deal with.
Journal of Performance Measurement
Among various selections, The Spaulding Group can be your best choice because of their wide knowledge and expertise in the field. The company provides a compliance and pre-verification consulting service that covers guidelines of composite membership, calculation methodologies and a systematic assessment of your marketing disclosures. They also give GIPS verification. Their main purpose is to make sure that your agency claiming GIPS compliance has remained to the standards. The Spaulding Group also offers performance examinations. Thus, companies may choose whether they want a more specific or broad performance examination of a composite track record. With their comprehensive services, you will definitely be surprised on how they work.
