GIPS: Who Benefits From Compliance?
GIPS standards are beneficial to both the investment management firms who are meeting all requirements and claiming compliance and the prospective clients of these firms. What do you think is a possible benefit for the investment management firm to meeting GIPS standards?
Correct.
Incorrect.
While reviewing procedures for establishing and maintaining GIPS compliance, firms will often review internal procedures and controls. What do you think the impact on internal controls may be related to GIPS compliance?
Investors also benefit from GIPS standards. One benefit for investors is the ability to easily compare performance presentations due to the consistent standards that all GIPS firms must use. How do you think investors view firms that are GIPS compliant?
Incorrect.
Correct.
In summary,
[[summary]]
Correct.
Incorrect.
Because all firms that are GIPS compliant follow the same standards, they can all be compared, allowing for competitive bids.
Attaining GIPS compliance actually may _improve_ the internal controls within the firm, another benefit of GIPS compliance.
Investors have more confidence in the integrity of GIPS compliant firms because compliance with GIPS increases the credibility of firms that are willing to meet these standards voluntarily.
The firm is allowed to weaken internal controls with GIPS standards
The ability to participate in competitive bids against other compliant firms
The internal controls will remain the same
Attaining GIPS compliance actually may improve internal controls
Investors do not have a preference as long as the reports are comparable
Investors have more confidence in GIPS firms
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