When it comes to presenting investment performance, there is a need to standardize the methods used for calculating performance to provide greater transparency and insight into an investor's return on investment. Three of the predominant requirements for investment performance presentation are the SEC's Marketing Rule, FINRA's RN 20-21, and the Global Investment Performance Standards (GIPS®).
While all of these requirements aim to streamline the presentation of investment performance, and claiming GIPS compliance solves for most of the Marketing Rule and FINRA Notice 20-21 requirements, there are still areas where the GIPS standards diverge from the regulations.
Download this white paper to gain insight into the similarities and differences between the GIPS standards and marketing and advertising regulations, and how this impacts a firm’s decision to present performance.
GIPS® is a registered trademark owned by CFA Institute. CFA institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.
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