tag:blogger.com,1999:blog-2568941354104807757.post7249279171977320351..comments2023-10-05T09:07:24.225-04:00Comments on Investment Performance Guy: Should you have a "valuation" policy?Dave Spauldinghttp://www.blogger.com/profile/01777929408680234896noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2568941354104807757.post-30068407280800600742011-01-13T11:33:00.656-05:002011-01-13T11:33:00.656-05:00Although GIPS doesn't explicitly state that fi...Although GIPS doesn't explicitly state that firms must have "written" policies, we do see a requirement for verifiers to "understand the policies, procedures, and methodologies used to value portfolios and compute investment performance." As my initial post suggests, firms should have policies independently of GIPS, and so this merely affirms that it's a necessity.Dave Spauldinghttps://www.blogger.com/profile/01777929408680234896noreply@blogger.comtag:blogger.com,1999:blog-2568941354104807757.post-50906294320933143782011-01-13T11:13:22.733-05:002011-01-13T11:13:22.733-05:00Colin, thanks for your comments. Regulators vary, ...Colin, thanks for your comments. Regulators vary, of course, but again, of course, firms are obligated to adhere to their requirements. I am not aware, for example, whether the SEC REQUIRES a "valuation policy," but perhaps they do. GIPS only speaks in very limited terms as to what is REQUIRED in P&P, but a list would, I believe, be beneficial for the industry. Perhaps something for someone to work on in advance of GIPS 2015!?!?! (if there will be such a thing)Dave Spauldinghttps://www.blogger.com/profile/01777929408680234896noreply@blogger.comtag:blogger.com,1999:blog-2568941354104807757.post-37538991728491450362011-01-13T08:51:35.178-05:002011-01-13T08:51:35.178-05:00I do not see there is any choice in the matter as ...I do not see there is any choice in the matter as all authorised firms are required under their regulatory membership to have documented valuation policies. GIPS recognises the preordination of regulation in this respect in that local regulatory requirements may force a particular pricing hierarchy or methodology that may vary or conflict with that suggested in the standards. While local regulation and supranational accounting standards set out the respective requirements, the Hedge Fund Matrix provides useful guidance as to the composition of the valuation policy document and how it fits into a firm's broader operational control and oversight activites. <br /><br />(Colin Morrison)Unknownhttps://www.blogger.com/profile/00462300371087278303noreply@blogger.com