This article discusses the importance of quality verification in the context of the Global Investment Performance Standards (GIPS®). It highlights the risks and negative impacts of using inexperienced verifiers who lack asset management and performance expertise. The document uses real examples from an anonymous country, to illustrate how subpar verification can lead to widespread non-compliance and false claims of GIPS compliance. It emphasizes the need for proper education, asking the right questions, and improving the verification process to ensure firms truly comply with GIPS standards.

Does it really matter if a verifier is not that well qualified/experienced in GIPS? Is it not just easier to get verified?

Chris Lourens