What are the standards of global investment?
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Global Investment Performance Standards (GIPS) have been developed by the Charterred Financial Analyst Institute to standardize report instructions and the profitability of the investment company. The CFA Institute introduced these ethical standards in 1999 to ensure that investment managers would complete the performance of investment in different countries. Regulation, performance measurement and investment procedures vary in different countries, but global investment performance standards provide worldwide set of performance standards that provide companies with the ability to penetrate global markets. GIPS encapsulates seven standards with which they are obliged to observe these companies. These standards include things such as professionalism, integrity, obligation to the client and care.
The first standard of global investment performance is professionalism that requires a high standard of ethics, although the problem is not identified in writing. Financial experts must comply with the rules, regulations and laws that controlAccounting profession. This also applies to countries where securities laws are not strict. The financial analyst of the Charter must observe code and standards in this situation.
Integrity of capital markets is another standard that deals with the use of non -public information. Investment companies must not act according to non -public information that could affect the value of shares. This is considered to be dedicated to trading when the investor receives information about shares for sale or purchase before information becomes public knowledge.
Global Standards of Investment Performances confirm the Fiduciáři dvies that brokers must have clients. Clients' interests are placed over the interest of a company or broker. This includes advice to the client about investment risks and ensuring that the information provided is accurate, complete and fair. The first duty of brokers is the client. Global Standards Investment Performance Require MakeThe era fulfilled their assigned obligations according to the required skills and abilities of this position. Brokers should not reveal confidential information or damage the investment company.
GIPS for investment analysis, recommendations and events are engaged in caring and a reasonable basis. A financial analyst must analyze investments and issue investment recommendations. These recommendations must be supported by research and evidence. In addition, the basic format and principles that have recommended recommendations must be communicated to clients and potential clients. This information should also distinguish between reality and opinion.
Global Investment Performance Standards require CFA members from preventing behavior. This type of behavior could affect the integrity or reputation of the CFA institute. Members should also not distort the consequences of membership in the Institute.