Competition and Markets Authority Approves CFA Institute Global Investment Performance Standards (GIPS®) for Fiduciary Management Providers to UK Pension Schemes

CFA Institute, the global association of investment professionals, announces that its Global Investment Performance Standards (GIPS^®) for Fiduciary Management Providers to UK Pension Schemes (“GIPS Standards for FMPs”) has been approved by the Competition and Markets Authority to be used by fiduciary managers when presenting historical performance to potential UK-based Full Fiduciary Management clients. 

Approval of the GIPS Standards for FMPs follows the Competition and Markets Authority Investment Consultancy and Fiduciary Management Market Investigation Order, which—among a package of remedies—requires fiduciary managers to use standardised methodologies and templates when presenting historical performance to potential Pensions Scheme Trustee clients, including in tender submissions and when marketing. 

Karyn Vincent, CFA, CIPM, Senior Head of Global Industry Standards for 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 Standards for FMPs 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.”

Gary Baker, CFA, Managing Director for EMEA and Industry and Policy Research at CFA Institute added: “Confidence in the reliability and comparability of performance data is a foundation stone to informed investment decision making. CFA Institute, through the GIPS Standards for FMPs, is delighted to be contributing to this key provision.”

The GIPS Standards for FMPs are aimed at fiduciary managers that provide advice and make investment decisions on behalf of the Pension Scheme Trustees, in respect of all or some of the pension scheme assets. CFA Institute is formulating a variety of educational resources to support Pension Scheme Trustees as they begin to receive tender submissions prepared following the GIPS Standards for FMPs.  To access the Standards, visit https://www.cfainstitute.org/en/ethics/codes/gips-standards/fiduciary-management-providers-for-uk-pension-schemes.