The Global Investment Performance Standards (GIPS) are a set of principles that are in use worldwide and enjoy global acceptance. They provide investment firms with guidance on how to calculate and report their investment results to prospective clients. The standards are based on the principles of fair representation and full disclosure of information and provide investors with the possibility to compare investment performances of asset managers worldwide. Originally created to meet the needs of institutional investors, the GIPS Standards are nowadays also increasingly used in Private Banking.
The GIPS Standards are a voluntary self-regulatory initiative of the global financial industry and are administered by CFA Institute. In 2010 the GIPS Standards were completely revised to reflect the developments on the financial markets. In the course of this revision, all Guidance Statements and Q&A within the GIPS framework were also aligned to the 2010 edition of the GIPS Standards. The current version of the GIPS Standards is available on the GIPS homepage.
The Asset Management Association Switzerland is the official country sponsor (representative office) for GIPS in Switzerland. The association is also responsible for the administration of GIPS in Switzerland. Together with its GIPS Expert Group, which consists of representatives of investment managers, banks and audit firms, the association promotes GIPS in Switzerland, organizes events and workshops on GIPS, coordinates the position of Swiss users of GIPS on developments and interpretations of the Standards and acts as a link to the global GIPS standard-setting bodies and the CFA Institute. Several members of the GIPS Expert Group represent Switzerland within the international GIPS committees.
The GIPS Executive Committee has approved the proposed requirement that firms claiming compliance with the GIPS standards notify CFA Institute. The purpose of this new requirement is to address the expressed requests for more information related to GIPS compliance. The required notification form will collect only limited data, while providing more extensive data is optional. Fur further information, please see here, for Q&A here.
The notification requirement has entered into effect on 1 January 2015. GIPS compliant firms will have to submit their notification form on an annual basis until 30 June of each year to comply.