LD Guidance Statement Public Comment

INVESTMENT PERFORMANCE COUNCIL (IPC) INVITATION TO COMMENT: ®Global Investment Performance Standards (GIPS ) Guidance Statement on the Use of Leverage and Derivatives The Investment Performance Council (IPC) and CFA Institute seek comment on the proposed GIPS Guidance Statement addressing the Use of Leverage and Derivatives set forth below. For information on the Guidance Statement process, please see http://www.cfainstitute.org/standards/pps/process.html. Comments must be submitted in writing and be received by CFA Institute no later than 31 December 2004. All comments and replies will be put on the public record unless specifically requested. It is preferable that comments be submitted in electronic form with settings that do not restrict the ability to ‘cut-and-paste’ text from the comment letter. Comments are also accepted in hardcopy and should be addressed to: CFA Institute CFA Centre for Financial Market Integrity Reference: Guidance Statement on the Use of Leverage and Derivatives P.O. Box 3668 Charlottesville, Virginia 22903 Fax: +1-434-951-5320 E-mail: standardsetting@cfainstitute.org Effective Date This guidance statement will apply to all firms from the Effective Date forward. The proposed Adoption Date for this Guidance Statement is June 2005 and proposed Effective Date is 1 January 2006. Executive Summary Strategies that utilize derivative instruments and/or leverage (gearing) are often very complex. These strategies ...