News
eFOCUS - spring 2007
Introduction - By Richard Lewis
Welcome to the latest edition of eFocus, the electronic newsletter from Performa keeping you in touch with the world of GIPS and all the latest news from Performa.
In my introduction to the 2004 Summer Newsletter I suggested that the investment industry might take a lesson from higher education. The lesson being that where, as in the United States, the industry itself introduces effective systems of quality assurance on a voluntary basis; the government exercises far less direct control over the industry than is the case elsewhere. One sage argued that many of the developments in quality assurance were based on that splendid principle of "act first to prevent worst".
Developments over the last three years appear to have reinforced that message. The higher education quality assurance system in the United States has moved forward only slowly and in particular has not demonstrated that it is dealing effectively with what is increasingly being regarded as a key issue - student learning outcomes; that is "what a student has in fact learnt as a result of her four years at Yale".
Following the admission of this 'failure to demonstrate' the Federal Secretary of Education commissioned a report whose recommendations mean that the government will soon exercise a far greater level of control over the higher education industry than ever before.
Another industry and another country. In its 2006 discussion paper "Private Equity: a discussion of risk and regulatory engagement", the FSA explicitly stated (or warned?) that it is keeping a watching brief on the issue of market opacity. In particular, it is observing the progress of a number of industry initiatives such the development of Global Investment Standards provisions on private equity. It goes on to state that it does not "currently intend to impose any form of transparency requirements on this market."
A gentle encouragement to the industry to move forward. Perhaps it is time to "act first".
Finally, I would like to thank Peter Ellis, Principal at Investit, for his guest article entitled 'Performance measurement - it's not rocket science is it?'
I do hope you enjoy this edition of eFocus.