Page 22 - FINAL CFA SLIDES JUNE 2019 DAY 1

LOS 4.c: Explain the requirements 4. Introduction to the Global InPerformance Standards (GIPS®)

for verification.

Verification—requirements:

Performed by a 3rd party -ONLY, on a firm-wide basis. Must attest that:

(1) firm complies with all GIPS requirements for composite construction on a firm-wide basis;&
(2) 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.”