2020 GIPS® standards – Explanation of the Provisions

CFA Institute issued the 2020 edition of the GIPS® standards on June 30, 2019 and since has been working on drafting explanations for each provision. From this effort, Explanations of the Provisions in Sections 1, 2, and 3 of the GIPS® Standards for Firms were finalized and released earlier this month. The information included within these explanations is vast. GIPS®-compliant firms will need to consider all of the detail outlined in the explanations when adopting the 2020 GIPS® standards. Notably, there are several references to policies and procedures that must be in place and requirements that compliant firms must follow when distributing performance outside of the GIPS® Report.  Below are links to the PDF copies of the Explanation of the Provisions for the first three sections. It is expected that explanations on the remaining provisions will also be released soon.

As a reminder, firms will no longer be able to comply with the 2010 GIPS® standards and will instead need to adopt the 2020 GIPS® standards once performance for periods ending on or after December 31, 2020 is included in GIPS® Reports. Until the firm meets all applicable requirements of the 2020 edition on a firm-wide basis, it must continue to comply with the requirements of the 2010 edition. Adopting the 2020 GIPS® standards includes addressing all interpretative guidance issued by CFA Institute. We are working with firms to amend their policies and procedures in advance of the deadline, as it is acceptable to adopt the 2020 edition of the GIPS® standards early but only once a firm meets all applicable requirements.

Explanation of the Provisions