Understanding Verification Under GIPS

Medium Global Investment Performance Standards Verification

Within the context of the Global Investment Performance Standards (GIPS), verification is a process that ensures an investment firm's performance presentations are fairly stated and compliant with GIPS. Verification does not assess the quality of the investment management process, rather it tests the firm's adherence to the standards. Suppose an investment firm has undergone a verification process by an independent third party.

Which of the following statements is true regarding the significance of verification under GIPS?

Verification assures clients that the investment firm has consistently adhered to GIPS over time.

Verification guarantees that an investment firm's performance is superior to its competitors.

Verification is only relevant for firms that claim compliance with GIPS.

Hint

Submitted6.8K

Correct4.1K

% Correct61%