WHY VERIFICATON?
Below is a list of the most common reasons for performing verification.
- Peace of mind. Several managers believe their current performance presentations may not accurately and fairly depict the performance of their strategies.
- To save time. Several managers may waste time with performance reporting because they have insufficient internal controls and lack proficiency with available software systems.
- Most, if not all, RFPs sent by consultants and prospects inquire about compliance and verification.
- The SEC is increasingly scrutinizing claims of GIPS® compliance and performance presentations generally.
- The CFA Institute strongly encourages verification.
- Most, if not all, electronic manager databases query GIPS® compliance and verification.
- Verification portrays honesty and the desire to gain the trust of clients and prospects.