Please Help! GIPS Questions: Example: If a parent company is not GIPS compliant and say for instance it’s subsidiary, an Investment Mgmt firm is held out to clients as a distinct business entity and is GIPS compliant Who can can claim compliance ? Are they allowed to claim compliance at all? Is a subsidiary by default considered a “firm” and, therefore , can be held out as a distint BU? Haven’t looked at FRA yet but from an accounting perspective, subs get consolidated to the parent company when presenting consolidated f/s. That being said, it say’s that claiming GIPS must be applied on a “firm-wide” basis. So does the parent company have to be GIPS compliant too? Please advice. Thanks!!
yes if they are working together
No, the parent company wont be considerred to be GIPS compliant. the term “an investment mgmt firm” suggests that the subsidiary is an separate business entity. If the term “an investment mgmt arm” was used, then yes. this has nothing to do with balance sheet. GIPS and IFRS/US GAAP are totally different standards.