In order to address the question of whether or not you should perform operational due diligence as part of your process to evaluate an investment manager, a broad analysis of the primary underlying risks is helpful. There are two main types of risk that investors need to assess: investment risk…more
The year is quickly nearing an end, which will bring a new set of pronouncements that will become effective in 2018. One of those pronouncements is Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2016-01: Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities.
The…more
Verifier independence is not a new topic within the GIPS Standards. In 2005, the GIPS Executive Committee released the Guidance Statement on Verifier Independence, which laid the foundation for verifier independence as well as outlined the minimum guidelines for verification firms and clients. The newly-proposed Guidance Statement on Verifier…more
The GIPS Technical Committee is seeking comments on a newly-proposed Guidance Statement on Risk and how it relates to the presentation of risk, both quantitatively and qualitatively within the compliant presentation. The Guidance Statement will address when and where risk-related information is appropriate, recommended, and required to be…more
Maintaining foreign bank accounts can be tricky, as there are multiple reporting rules that need to be followed. The U.S. government continues to make foreign financial information filings more expansive and complicated. In fact, not filing these forms can result in penalties that may exceed the values of the…more
Through the course of our work in the investment industry, we discuss fee calculations with both investment managers and investors on a regular basis. We have several clients who have engaged us to perform fee recalculations on their behalf, and we have seen an increase in the number of institutional…more
The Division of Investment Management (DIM) of the U.S. Securities and Exchange Commission (SEC) recently issued three different clarifications that have an impact on whether a registered investment adviser (RIA) has custody of client assets under Rule 206(4)-2 of the Investment Advisers Act of 1940, commonly known…more
Today’s business leaders face many challenges and rapid changes with respect to information and cyber security. When one considers the wide range of vulnerabilities – ranging from threats, malicious intruders, and thieves to disgruntled employees and industrial espionage – managers and business owners need to make sure they have an information…more
Cybersecurity is an ever-present concern for business leaders with valuable data to protect and multiple potential entry points to secure against being infiltrated by hackers, says Sassan Hejazi, Ph.D., Director of the Technology Solutions Group at Kreischer Miller.
“The companies that are most prepared have upgraded their protections…more
Provision 0.A.9 of the GIPS Standards requires that firms make every reasonable effort to provide a compliant presentation to all prospective clients. A prospective client is defined as any person or entity that has expressed interest in one of the firm’s composite strategies and qualifies to invest…more