The United States Investment Performance Committee (USIPC), in conjunction with CFA Institute, recently conducted a survey to seek input on error correction policies and procedures used by firms that comply with the Global Investment Performance Standards (GIPS®). The purpose of the survey was to inform the investment industry on how firms develop and administer their GIPS® standards compliance programs with respect to such policies and procedures.
The survey covered a range of error correction related topics including:
- Are error correction policies being applied on a composite-specific or firm-wide basis?
- Are performance errors being evaluated in absolute terms or relative terms?
- Are non-performance related errors being addressed in error correction policies?
- What are typically materiality thresholds being applied for various asset classes?
An executive summary that analyzes the results of the survey is available on the CFA Institute website.
This is a great opportunity to examine your error correction policies and procedures to confirm they are adequate.
For more information, please contact us at info@CompliantPerformance.com.
