CFAI summary states “Verification cannot be carried out for an individual composite.” but goes on to add “Firms […] may choose to have a further in-depth examination of a specific composite”. Also on page 308 actually gives a statement to add “The [named] composite has been examined for the periods []” I am confused. So, darkstar and others can composite specific verification be carried out or no??
So they must be saying: Its all or nothing verification as always, a single composite verified will not count. BUT once all GIPS compliance is verified, then single composites can be additionally verified…presumably the hot products that the company want to push harder. Sound right?
Verification carried out on the firm level. You can however get performance verification for a single composite beyond the firm verification (which basically checks internal controls). Verification does not verify the accuracy of composition performance reporting. The third performance verification does verify the accuracy of actual reported results.
It’s two different things - verification vs performance examination. Step 1: You comply with GIPS on a firm-wide basis Step 2: You get your GIPS compliance verified on a firm-wide basis Step 3: You can then have individual composites undergo a performance examination You can’t do step 3 without step 2, and you can’t do step 2 without step 1. I’d recommend scrapping the CFAI and Schweser material and just read the actual GIPS Standards. The CFAI material is overly complicated, and the Schweser material is too simplistic.
I take the liberty on behalf of AF LIII to crown darkstar and Paraguay as GIPS kings
good advise, will read the GIPS stds.
One other thing that helped me in reading the actual GIPS is that it has actual sample of compliant presentation. Take a look and see how many of the disclosures you can identify. It gives you an idea what typical presentation/disclosure MUST have and what disclosures and presentations are somewhat contingent upon certain circumstances.