The Keys to Effective Operational Due Diligence [presentation]

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

An Update to 408(b)(2) and Its Impact on Investment Advisors

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

Investment Fees: Are You Charging the Right Amount?

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

Are You in Compliance with SEC Custody Rules?

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

Are GIPS Composite Examinations Worthwhile?

The Global Investment Performance Standards (GIPS) were created and funded by the CFA Institute to provide an ethical framework for the calculation and presentation of the investment performance history of an investment firm. Many investment firms understand that GIPS verifications are the primary key to gaining access to institutional assets…more

What Investment Advisors Need to Know About 408(b)(2)

In December 2007, a proposed rule was published concerning the disclosures that must be furnished to plan fiduciaries in order for plan services to be considered “reasonable.” Following a public comment period, public hearing, and interim final rule published in July 2010, the final rule became effective July 1. This…more

Alternative to GIPS for Investment Performance Credibility

Many investment advisors follow the Global Investment Performance Standards (GIPS) to bolster the credibility of their performance results.  However, not all firms are able to claim compliance with GIPS.  A non-GIPS examination report can add credibility to a firm’s performance results without the firm having to apply the…more

Decoding GIPS

Global Investment Performance Standards (GIPS) are broadly accepted, voluntary global standards for calculating and presenting investment performance. The standards are ethical principles that promote fair representation and full disclosure of investment performance to prospective clients.

By standardizing investment performance reporting, investors around the world gain the additional transparency needed to…more

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