Page 39 - CFA - Day 1 & 2 Course Notes

LOS 4.c: Explain the requirements 4. Introduction to the Global Investment

for verification. Performance Standards (GIPS®)

Verification—requirements:

Verification is performed by a third party, not by the firm itself, on a firm-wide basis. This

third party verifier must attest that:
(1) the firm has complied with all GIPS requirements for composite construction on a

firm-wide basis and

(2) the firm’s processes and procedures are established to present performance in
accordance with the calculation methodology required by GIPS, the data

requirements of GIPS, and in the format required by GIPS.

Verification—recommendations:

Firms are encouraged to pursue independent verification. Verification applies to the entire

firm’s performance measurement practices and methods, not a selected composite.

Verified firms should include the following disclosure language:

“[CharterQuest Capital LC] has been verified for the periods [2018] by [ABC Inc]. A copy

of the verification report is available upon request.”