White Paper: SEC Marketing Rule, GIPS Standards, and FINRA RN 20-21 - What Sets Them Apart?

When it comes to presenting investment performance, there is a need to standardize the methods used for calculating performance to provide greater transparency and insight into an investor's return on investment. Three of the predominant requirements for investment performance presentation are the SEC's Marketing Rule, FINRA's RN 20-21, and the Global Investment Performance Standards (GIPS^®).

While all of these requirements aim to streamline the presentation of investment performance, and claiming GIPS compliance solves for most of the Marketing Rule and FINRA Notice 20-21 requirements, there are still areas where the GIPS standards diverge from the regulations.

Download this white paper to gain insight into the similarities and differences between the GIPS standards and marketing and advertising regulations, and how this impacts a firm’s decision to present performance.

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How we help

We are the only governance, risk, and compliance (GRC) firm that offers both regulatory compliance advisory  and performance expertise, including a deep understanding of the intricacies of complex performance calculation methodologies. We can assist your firm with overcoming the challenges uncovered in the survey. Our services include:

Firm-wide verification: Independent verifications designed to assess whether your firm is adhering to the GIPS standards. These verifications confirm:

• Whether your firm has complied with all the composite-construction requirements of the GIPS standards on a firm-wide basis
• Whether your firm’s processes and procedures are designed to calculate and present performance results in compliance with the GIPS standards

Focused review: Review of your calculations to ensure that the methodology used was applied consistently and in-line with the SEC Marketing Rule or FINRA RN 20-21. 

Managed performance services: Outsource all or certain aspects of your performance measurement and reporting functions with the assurance that you are working with a team that not only understands the technical aspects of calculating complex performance, but also knows industry best practices and regulatory expectations. 

Reach out to your ACA consultant or contact us here to learn how we can help with your investment performance calculations.