Operational due diligence

GIPS compliance services for investment managers

Core GIPS compliance services

  • Pre-verifications: Preliminary assessment and consultation to identify potential hurdles to GIPS compliance
  • Verifications
  • Composite examinations
  • Consulting advice
  • Review of advertisements for GIPS compliance
  • Non-GIPS investment performance reporting

Several non-CPA specialty firms currently offer consulting and verification services. While it is important to fully know the GIPS standards, a good verifier/consultant also needs to have a strong understanding of audit principles and internal controls beyond basic performance compliance. As a CPA firm, we are subject to extensive oversight (including the PCAOB and AICPA) to ensure the quality of our work. We support this rigorous oversight because we believe that it strengthens the overall quality of the verification process.

Some firms are so large that they are unable to respond to the need for highly personalized service at a reasonable price. These large firms often have high engagement team turnover and utilize less experienced staff. KM, however, is uncommon in its ability to meet the needs of investment advisors. KM strives to maintain consistent engagement staffing by a team that is well versed in the GIPS Standards, the investment industry, and audit techniques. KM’s experienced directors and managers are involved with the engagement from the onset. Our engagements do not get sent to other offices for review. KM’s robust review process occurs in the same office by members of the Investment Industry Group. This results in immediate feedback and a more timely communication of our consulting suggestions and reports.

We have extensive experience in obtaining a thorough understanding of an investment manager’s policies and procedures, making meaningful comparisons to industry best practices, and recommending areas for improvements. We have an extensive background in performing operational and valuation due diligence, which includes addressing many key systems and processes, including those relating to performance reporting. In addition, our team has significant technical knowledge of the GIPS Standards derived from our experience in performing GIPS engagements and actively participating in the GIPS Standard setting process. We are unique in our ability to provide meaningful feedback to our clients.

  • Are you in compliance? GIPS verification services for investment managers
    Presenting investment performance data that is in compliance with Global Investment Performance Standards (GIPS) has virtually become an industry mandate…learn more