R33 - GIPS - CFAI Q11 - "Significant" cash flow policy?

[SydCFAL3]

Hi guys,
Could someone please provide some assistane and let me know what the difference between a
- large cash flow policy
- Significant cash flow policy
Also if it is mentioned somewhere clearly in the text.
Just want to try and finish GIPS a.s.a.p. and get back to the core stuff
Thanks in advance.

 

[smores]

Large cash flow - “level at which the firm determines that an external cash flow may distort performance if the portfolio is not valued.” A large CF should be less than a significant CF and the portfolio stays in the composite. The only effect is during the composite performance calculation where any portfolio with a large CF is valued on that date. Large CF policies are mandatory.
Significant cash flow - “level at which the firm determines that a client-directed external cash flow may temporarily prevent the firm from implementing the composite strategy, thereby causing the portfolio to no longer be representative of the composite strategy.” A significant CF policy is optional, the level should be higher than a large CF, and the portfolios are temporarily removed from the composite.

 

[pollfre]

impressive smores

 

[SydCFAL3]

Thanks @smores