Navigating the intricacies of financial regulations can be a challenge, especially with the recent update to the SEC Marketing Rule 206(4)-1. Reconciling this with the Global Investment Performance Standards (GIPS) requires attention to detail and a proactive approach. Let’s break down the top five things you need to focus on to ensure a seamless integration.
First off, ensure your performance presentations align with the GIPS standards. It is our pleasure to help your firm accomplish this. Stick to standardized calculation methods, covering everything from fees to valuations and composite construction. Consistency not only keeps you in line with GIPS but also boosts the accuracy of your performance reporting, meeting the expectations set by the SEC.
Next, pay close attention to the new SEC Marketing Rule’s emphasis on fair and balanced performance presentations. Prioritize clear, accurate, and complete disclosure of relevant information. This not only complies with GIPS but also builds trust with clients and prospects, aligning perfectly with the SEC guidelines.
Don’t forget about compliance with recordkeeping requirements. Establish and maintain comprehensive records documenting your calculation methodologies, inputs, and assumptions. This not only showcases adherence to GIPS but also makes SEC examinations a breeze, ensuring a smooth regulatory process.
In addition to performance considerations, implement the required robust policies and procedures for compliance monitoring. Regular internal reviews, audits, and assessments are essential to catch and rectify any deviations from GIPS or SEC Marketing Rule requirements early on. This proactive approach ensures ongoing compliance and a culture of continuous improvement within your organization.
Lastly, stay informed! Keep an eye on updates and changes to both GIPS standards and SEC regulations—we love to help with that. We love to keep clients au courant of ongoing education and training opportunities to keep your team in the loop. By fostering a culture of compliance and continuous learning, you’ll be well-equipped to adapt swiftly to evolving regulatory landscapes, setting your firm up for long-term success.
In conclusion, tackling the reconciliation of GIPS standards with the new SEC Marketing Rule requires a hands-on and comprehensive approach. Focus on aligning your performance presentations, maintaining fair and balanced disclosures, impeccable recordkeeping, robust compliance monitoring, and staying informed. By doing so, you’ll not only meet regulatory requirements but also position your firm as a leader in the ever-changing financial industry.
And you won’t have to do it alone. We are here to help you succeed.