4 - Global Investment Performance Standards (GIPS)

Question 1

LOS 4.a - Describe the GIPS Objectives.

Answer 1

• To obtain acceptance of calculation and presentation standards in a fair, comparable format with full disclosure.
• To ensure consistent, accurate investment performance data in areas of reporting, records, marketing, and presentations.
• To promote fair competition among investment management firms in all markets without unnecessary entry barriers for new firms.
• To promote global “self regulation.”