The next version of GIPS is coming. A draft is expected to be released by the end of August with a comment deadline of December 31, 2018. After comments and feedback are received, the target issue date for the final version is June 30, 2019 with a planned effective date of January 1, 2020.
GIPS 2020 will introduce many changes to improve the standards and to ease the burden of compliance for asset owners, alternatives managers, and firms that manage funds. There are also many changes which should improve the standards for everybody.
New versions of GIPS are always released in a preliminary draft before being finalized. This is a good thing because it allows managers, owners, regulators, industry groups, and others to weigh in with their opinions. It is an important element of the standard setting process as it allows everybody in the investment industry to have a say.
Comment letters are read by the GIPS committees and are factored into crafting the final version. Please consider sending a comment letter in response to the draft, even if you only want to address particular topics. You can request confidential treatment if you do not want to have your comment letter posted online.
Be alert for the draft, which will be available soon on www.gipsstandards.org. Please feel free to contact us with any questions.
We would be pleased to provide further information related to this subject. For more information, contact Thomas A. Peters, Director, Audit & Accounting at tpeters@kmco.com.
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