Back (or) to the future?

We are hearing from firms on a regular basis who want to become compliant with GIPS(R) (Global Investment Performance Standards). More and more hedge funds are showing interest, as well as long only managers and others. While we attribute part of this sudden interest to Bernie Madoff, no doubt the market downturn has provided motivation, as well as the desire for many of these managers to enter the institutional space, where compliance is virtually mandatory.

And so, what set of standards should the firm comply with, the 2005 or 2010 edition?

Clearly, 2010; why bother going through all the effort to comply with a version which is about to become obsolete. Get a copy of the new version and comply with that. You'll be able to still use much of what's in the current version of the handbook, too. Don't look back, move forward!