I’ve been tripped up a few times with the inconsistencies between ethics and GIPS. Let’s get a thread going to capture these.
Here’s two that come to mind:
Benchmarks in performance presentation:
- Ethics: No requirement to provide the benchmark in performance presentation
- GIPS: You are required to provide a description of the benchmark: must disclose if a custom or a combination of benchmarks was used.
- Ethics: No defined timeline for how long the terminated account must be included in past performance (presume indefinitely?)
- GIPS: Terminated accounts must remain in the composite for 5 years.
Will post more as they come to mind.