Industry's First Such Review
The Spaulding Group, Inc. (TSG) announced that it conducted a peer review of Nowicki and Company, LLP's GIPS® (Global Investment Performance Standards) verification practice. It is believed that this is the industry's first such review.
"As a CPA firm, and as former member of the Peer Review Board of the American Institute of CPAs, we strongly believe in the value of peer reviews. If done properly, it becomes a foundation for professional improvement, rather than being used as purely an enforcement tool" said Raymond M. Nowicki, Founding Partner Of Nowicki and Company. "We selected The Spaulding Group because we were impressed by their extensive reach into the performance field, their expertise in the Standards, and their sensible approach to a process which is evolving. We found the exercise and their findings very helpful."
"We were flattered to have been chosen by Ray for this assignment," said Christopher Spaulding, a TSG Executive Vice President who is responsible for strategy and business development. "We recognize, as do many of our peers, that there is a need for some degree of verifier review or oversight. There is no one who 'verifies the verifier,' so perhaps 'policing ourselves,' through peer reviews, is an answer. It's at least something for other firms to consider."
"The investment industry places a great deal of emphasis on GIPS compliance and verification," said Jed Schneider, CIPM, FRM, a TSG Senior Vice President who heads the firm's verification practice. "When concerns arise regarding the integrity, completeness, or accuracy of a verification, it reflects poorly on all firms that offer this service. We raised the need for some sort of review almost 20 years ago. In fact, at the most recent GIPS Annual Conference in Boston a speaker brought this issue up. Ray Nowicki's request for a peer review may serve as the catalyst to move us to something that everyone can agree with."