So, for GIPS total firm assets must include all fee paying and non fee paying accounts. But when making composites, only discretionary fee paying accounts have to be included? I’m confused about what is required to be included in the composites.
composites require repoting of all fee paying discretionary accounts, total firm assets include all accounts discretionary, non-discretionary, fee-paying and non fee paying
You are right lilliland. For the definition of the firm, everything is included (e.g., discretionary, non-discretionary, fee-paying, non-fee-paying). For composites, non-discretionary accounts cannot be included, and the firm may choose whether to include non-fee paying accounts. In other words, discretionary and fee paying accounts are the only accounts required to be included in composites.
Thanks, I get it now!