The CFA Institute recently released its Guidance Statement on the Application of the GIPS Standards to Asset Owners. The Guidance Statement becomes effective on January 1, 2015. Overall, this Guidance Statement clarifies how the Global Investment Performance Standards (GIPS) can be applied by asset owners looking to claim compliance with…more
The GIPS Executive Committee recently implemented a requirement for firms that claim compliance with the GIPS Standards. All firms claiming GIPS compliance must now notify the CFA Institute of their claim of the compliance on an annual basis.
The notification will be done utilizing an online form. Firm name, contact…more
Several years ago, the Securities and Exchange Commission undertook a project to revise the reporting requirements of broker-dealers. As many of our clients are getting ready for their annual audit, we thought now was a good time to revisit the revised reporting requirements for broker-dealers.
In June 2011…more
The Global Investment Performance Standards (GIPS) provide a voluntary framework for investment managers to use in presenting their investment performance. GIPS compliance has become increasingly important, particularly when dealing with institutional investors who often insist upon it.
GIPS verifications test whether a firm has complied with the GIPS composite construction…more
Over the last several years, the IRS has placed a high priority on stopping offshore tax cheating and bringing individuals back into the tax system. Ongoing efforts by the IRS, as well as the Department of Justice, have raised awareness of tax and information reporting requirements for non-U.S…more
Operational risk involves many qualitative elements such as an investment manager’s controls, design and implementation of systems, and oversight of employees. It is considered an uncompensated business risk because taking on additional risk of this nature is never expected to improve returns. Implementing a strong operational due diligence process…more
The Department of Labor (DOL) recently put forth a proposed amendment to its rule, Reasonable Contract or Arrangement Under Section 408(b)(2) – Fee Disclosure, which initially became effective July 1, 2012.
Under the original rule, covered service providers were required to provide certain disclosures, some of which are described…more
In today’s marketplace, investment management fees vary widely from one product to another, as well as from one client to another. Fee calculations range from simple to quite complex.
In their most basic form, management fees are a flat percentage of assets under management. However, investment advisors and clients…more
Broker-dealers operate in a highly regulated environment, which frequently changes. Below are highlights of some key broker-dealer amendments recently adopted by the SEC as well as PCAOB audit findings.
SEC Amendments
The recent Securities and Exchange Commission amendments relate to the net capital rule, the customer protection rule…more
After the barrage of investment frauds several years ago, the SEC came under intense pressure to update its rules protecting investors. The SEC responded by issuing what is commonly referred to as the “custody rules.”
The custody rules indicate that if an investment manager has custody of client funds, they…more