I’m on LOS 4.g. in the Schweser notes (Book 1, pg 64). It states: 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: “[Insert name of firm] has been verified for the periods [insert dates] by [name of verifier]. A copy of the verification report is available upon request.” Maybe I’m missing something, but what’s the requirements and recommendations sound like the same thing to me. Can anyone clarify? Thanks
Verification is totally optional for the firm. Firms are encouraged/recommended to get Verified. Firms self regulate whether they’re GIPS compliant. If the whole firm is GIPS compliant, then they can advertise accordingly. If they are GIPS compliant and got verified, again, advertise accordingly. Think of it as telling people you know how to use Microsoft Office vs. earning the certificate that shows ppl you know your stuff.