There are 9 major sections of the GIPS law. They are:
1. Fundamentals of Compliance
This section defines a firm, documentation of policies and procedures, and requirements for maintaining compliance.
2. Input Data
These are standards for having consistent input data to be used to calculate investment performance.
3. Calculation Methodology
To have better comparability there must be uniformity in the calculation methodology to be used.
4. Composite Construction
This standard emphasizes the importance of creating fair composites.
5. Disclosure
This standard requires the kind of disclosure required to be presented.
6. Presentation and Reporting
This standard provides for how the data should be presented and reported.
7. Real Estate
These standards were formulated for the real estate funds.
8. Private Equity
The standard requires the private equity valuation principles to be used for the valuation of private equities.
9. Wrap Fee / SMA Portfolio
This standard requires the firms to include the performance record of all accounts in appropriate composites.