Understanding GIPS Compliance for New Products

Easy Global Investment Performance Standards Compliance

The Global Investment Performance Standards (GIPS) provide a standardized framework for investment performance reporting. Compliance with GIPS is essential for firms aiming to demonstrate fair representation of investment performance.

A firm, XYZ Investments, has been reporting performance data based on GIPS but has recently incorporated a new product that does not meet GIPS requirements. To maintain credibility and uphold ethical standards, XYZ must consider how to handle its GIPS compliance in this situation.

Which of the following actions should XYZ Investments take to ensure compliance with GIPS regarding the new product?

Continue reporting the performance of the new product as part of GIPS-compliant reporting.

Exclude the new product from GIPS-compliant performance reports until it qualifies.

Generate separate performance reports for the new product without mentioning GIPS compliance.

Hint

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