The question/solution below explains the correct wording of a claim of GIPS compliance in advertisements. I wonder, IF the firm had been verified, should they mention that in the advertisment, as the 2nd sentence?
Greene Springs Asset Management complies with the GIPS standards but has not been verified. The firm wishes to prepare an advertisement that includes a claim of compliance. Which of the following is the correct wording of the GIPS compliance statement for advertisements?
“Greene Springs Asset Management claims compliance with the Global Investment Performance Standards (GIPS®).”
“Greene Springs Asset Management claims compliance with the Global Investment Performance Standards (GIPS®). The firm’s compliance has not been independently verified.”
“Greene Springs Asset Management claims compliance with the Global Investment Performance Standards (GIPS®). A list of composite descriptions is available upon request.”
A is correct. Chapter III.B.3 of the GIPS Advertising Guidelines provides the correct wording of the compliance statement that must be used in advertisements that include a claim of compliance. The advertisements must also state how prospective client can obtain a compliant presentation and/or the firm’s list of composite descriptions, but that disclosure is not a part of the GIPS compliance statement for advertisements. (See Section 5 of the reading.)