I forgot, and I can’t find the answer. Are GIPS designed to be minimum worldwide standard? or maximum worldwide standard?
Maximum – Best practice!
it is the minimum standard.
Investment managers should apply local laws if they are stricter than GIPS. If GIPS conflict with local laws regading performance presentation or calculation, manager must adhere to local laws and give full disclosure of the conflict–one key characteristics of GIPS.
$tarving_Banker Wrote: ------------------------------------------------------- > it is the minimum standard. I disagree… If it were the minimum standard, then everyone in the world would need to comply. Even CFA does not require compliance with GIPS!!
ok, one person says minimum, another person says maximum. I say IT’S GONNA BE ON THE TEST! Can anybody (I will look, too) find out what the text says, and on what page…
Starving banker is just flat out incorrect. GIPS is an optional standard to comply with!!! What part of that is hard to understand!
GIPS are ethical, voluntary standard. (Not a legal requirement) designed to serve as minimum standards. Which means firms can choose to implement even more stringent rule if they desire.
I’m leaning towards the maximum debate, even though I haven’t read much about GIPS.
what page? I’m looking now at p. 120, and I do not see the word “minimum” - where is that?
We’re looking at the min/max thing from different sides of the coin. I’ve definitely had multiple schweser questions that have called it the maximum standard.
It’s maximum. Cheers
On page 125 (in the middle of the page) is says “The GIPS standards are no longer the minimum worldwide standard.” I honestly remember a question about this last december on the exam. I’ve seen Schweser address it, but I never really felt convinced that answer was minimum or maximum…
I think it’s a word game, whereby basically they mean if you are a GIPS compliant shop that is the all that is required from you as far as presenattion is concerned. All that is required means maximum…
well, if somebody comes across the actual word minimum or maximum tonight or tomorrow morning, thanks in advance if you post it
how can it be the maximum standard? There are a bunch of recommended items within GIPS that could improve a company’s performance presentation. However, if you want to be able to compare your company’s performance to others around the world, voluntarily complying with GIPS is the minimum requirement to do so.
I saw it on browse questions in Qbank as being the maximum.
TO THE MAX!
So do we have an answer yet? I came across this when I was re-reading this section. Schweser calls max but Stalla calls it min. Whereas the curriculum calls it “no longer” min. I think I need a drink:) If an investment FIRM applies the GIPS standards in a performance situation that is not addressed specifically by the Standards or is open to interpretation, disclosures other than those REQUIRED by the GIPS standards may be necessary. To fully explain the performance included in a presentation, FIRMS are encouraged to present all relevant ADDITIONAL INFORMATION and SUPPLEMENTAL INFORMATION.
I know for a fact it is the minimum. Are you guys all saying, that by using GIPS, there is no possible way (with GIPS or without) that you could make your performance presentation better? It doesn’t make logical sense. Follow Schweser (if they really said this), and I will get this question right on the exam…