1.1. Firm’s Definition
The firm can be defined as an investment firm, its subsidiary, or division held out to clients as a distinct business division.
1.2. Historical Performance Record
The firms must present at least the following to their clients:
a. A minimum of 5 years of GIPS compliant investment performance
b. If the firm is less than five years old, then it must present the performance record since inception
c. Once the firm has initiated the compliance, the firm must add one year of compliant performance each year up to 10 years
d. The firms can link non-GIPS compliant performance to its compliant performance as follows:
i. For the performance before the date on which the firm adopts GIPS for the first time, the performance can be linked directly, by disclosing that the firm became compliant on that date
ii. If however, the firm deviates from the compliance after adopting the same, it must disclose how the presentation differs from GIPS