The CFA Institute’s global investment performance standards (GIPS) for fiduciary management providers have been approved by the UK’s Competition and Markets Authority (CMA).
Fiduciary managers will be required to use the new standards when representing historical performance in UK pensions schemes.
The move follows publication of the CMA’s investment consultancy and fiduciary management market investigation order, which requires fiduciary managers to use standardised methodologies and templates when presenting historical performance to potential pensions scheme trustee clients.
Karyn Vincent, senior head of global industry standards for the CFA Institute, said:
“Prospective and existing clients of fiduciary managers benefit from an investment performance standard by having a greater degree of confidence in the information presented to them.
“The GIPS for fiduciary management providers will provide pension scheme trustees with greater transparency and comparability of fiduciary managers’ historical investment performance through a single standard for calculating and presenting performance data.”
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