Compliance and Verification

Compliance

Compliance with the GIPS standards requires adherence to all applicable requirements of the GIPS standards, including any clarifications, updates, reports, Guidance Statements, questions and answers (Q&As), and the handbook.

Firms are encouraged to comply with all recommendations within the Standards. The GIPS standards must be applied with the goal of full disclosure and fair representation of investment performance. Meeting that goal will likely require more than compliance with the minimum requirements of the GIPS standards.

Learn how to become compliant.

Firms claiming compliance with the GIPS standards must notify CFA Institute of such claims by 30 June each year using data as of prior year-end. Submit the compliance form.

Benefits of Compliance

Claiming compliance with the GIPS standards demonstrates a firm-wide commitment to ethical best practices and that the firm employs strong internal control processes. Investors value GIPS-compliant firms because they can rely on the performance presentations they receive.

Learn about the benefits of complying with the GIPS standards.

If a firm does not comply with the GIPS standards, you might want to explore why the firm has chosen not to comply. See which firms claim compliance.

Verification

Verification is the review of an investment management firm’s performance measurement processes and procedures by an independent third-party verifier. Specifically, verification assesses whether the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis. It also tests whether the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards.

Third-party verification brings additional credibility to a firm's claim of compliance and supports the overall guiding principles of the GIPS standards: fair representation and full disclosure of a firm's investment performance.

Learn more about verification.