Just finishing the tedious reding on GIPS and it got me wondering whether a firm that fails independent verification (for obvious reasons) will still be able to claim compliance with GIPS. As I see it, if the compliance could not be verified thare is no compliance. The books do not say anything about this.
These are the things that keep my mind busy on a lonely Sunday studying.作者: infinitybenzo 时间: 2011-7-11 19:09
no i guess verification is a one up on compliance which gives a higher trust and credential for performance presentation. a firm can be gips complaint but may or may not be verified.作者: bpdulog 时间: 2011-7-11 19:09
Verifying your firm's compliance to GIPS, is a recommendation of GIPS.作者: lcw77 时间: 2011-7-11 19:09
"a firm that fails independent verification (for obvious reasons) will still be able to claim compliance with GIPS"
I believe the verifying firm would provide them with a list of why they did not comply and were not verified, then they get a chance to fix the stuff and try again no?作者: ll11 时间: 2011-7-11 19:09
I dont't think I made it clear what my question was.
Let me use the following metaphor: If you consider yourself healthy but go to the doctor for your annual physcial and fail this, would you still be able to say you are healthy?
I don't see logic in a firm failing verification to still be able to claim compliance. Any suggestions?作者: Windjammer 时间: 2011-7-11 19:09
You can still claim compliance.
You can say the claim was verified by so-and-so, and the verification report is available upon request.
It is up to the investor to go thru the report and see you are not compliant at all. Caveat emptor.作者: pennyless 时间: 2011-7-11 19:09
but the claim of compliance in this case wasn't verified. this seems like a scenario that when verification is sought it should be binding.作者: zwjy 时间: 2011-7-11 19:09
I don't think this is correct Jan, i don't have the text in front of me but i'm pretty sure i remember thinking to myself "man, there is no real upside to doing this" .... because it seemed like if you fail verification you can't claim compliance till remedied, so why would anyone do it?作者: Unforseen 时间: 2011-7-11 19:09
You are right , it would be simpler to just not claim compliance , get things fixed , then try for compliance作者: Darien 时间: 2011-7-11 19:09
Well now there are two ways to claim compliance. If you are not verified, you still have to state that you are NOT independently verified. I think that's something new as I don't remember it from before.作者: Iginla2011 时间: 2011-7-11 19:09
I don't think thats right either... i don't remember you having to say anything if you aren't verified and haven't sought to be. It's not mandatory anyhow.作者: Analyze_This 时间: 2011-7-11 19:09
Its true, you have to disclose it if you haven't been verified. CFAI volume 6, page 308
