In the fourth episode of the master class series on the SEC Marketing Rule, you’ll hear from host Patrick D. Hayes along with Carlo di Florio, Julia Reyes and Shivani Choudhary with the ACA Group, Karyn Vincent with the CFA Institute, and Janice Kitzman with Cascade Compliance as they discuss the various Marketing Rule performance requirements including how they compare and contrast with GIPS 2020. The panelists will provide practical advice and insights as to how best to set your compliance program up for success.
Season 3, Episode 9 Topics:
Interview with Karyn Vincent, Janice Kitzman, Julia Reyes and Shivani Choudhary
3:09: Net vs Gross Performance
16:22: 1, 5, ads 10-year requirements
25:00: Related performance
40:03: Extracted performance - attribution
51:43: Hypothetical performance
1:07:15: Portability of performance
4:43 – “Given that the definition of performance refers to a portfolio, I think it’s reasonable to assume that performance does not include items that are meant to be analyzed or be composed for portfolio performance. For example, standard deviation and other risk measures are not the returns of a portfolio.” - Karyn
12:48 – “Whatever you are providing to a prospect investor, at the end of the day would that be construed as misleading or not is the mindset you should be thinking about.” – Julia
20:31: “I am a big believer in updating GIPS report annually and just leaving them alone. [In times of market volatility] the safest approach is to include any other performance information including year-to-date returns either in other materials or maybe as an attachment to the GIPS report. If the GIPS report is used as a standalone advertisement it has to meet all of the requirements of the Marketing Rule. This is what many firms do now and should continue with this approach.” - Karyn
31:57: “GIPS compliant firms will definitely have a leg up with the Marketing Rule because they will have already calculated composite returns that they too will consider meet the requirements of the Marketing Rule” – Karyn
57:49: “Every time someone turns around with [a] model, and it’s often a chain, that is being used within these platforms, you have to stop and say is it ok that I am giving this performance to people. There is going to come a time when you say, “no.” - Julia
About the Securities Compliance Podcast: Compliance in Context
Introducing the Securities Compliance Podcast: Compliance in Context presented by Calfee, Halter & Griswold and the National Society of Compliance Professionals and hosted by Patrick D. Hayes, Partner and leader of Calfee's Investment Management practice.
Designed as a personal master class for the securities legal and compliance professional, this podcast embodies Patrick’s passion to help you put Compliance In Context™ by combining the technical expertise of industry thought leaders and innovators with the practical experience of doers and key decision makers.
The opinions expressed by guest speakers and panelists during Securities Compliance Podcasts may not necessarily reflect the viewpoints of the attorneys and professionals of Calfee, Halter & Griswold LLP or its subsidiaries or affiliates. Calfee’s educational content is intended to inform and educate readers about legal developments and is not intended as legal advice for any specific individual or specific situation. Please consult with your attorney regarding any legal questions you may have. With regard to all content including case studies or descriptions, past outcomes do not predict future results.
Susan M. Kurz
Chief Marketing & Client Development Officer