There are two main concerns that I have:
- Where is the problem? The FAF standards, which became the AIMR-PPS(R) standards, and (arguably) the GIPS(R) standards, were developed to solve a problem and a need for improved and ethical representation of past performance for prospective clients. But where is the problem in client reporting? Granted, some firms often want ideas, but is this the way to provide solutions? Unclear to me.
- Will this be GIPS II? By this I mean, will this be another standard that firms will be required to comply with, possibly meaning additional costs?
A few yeas ago, the EIPC (European Investment Performance Council) developed guidance for reporting, and this will no doubt be used during this process. If you are interested in seeing a copy of what they developed, please let me know, and I'll send it along.
By the way, we will address this topic again next month, at PMAR Europe II in London.