Mandatory Verification

At the Annual GIPS conference in Chicago on Friday 28 September 2007, it was announced by the CFA Institute that mandatory verification would not be included within the 2010 version of GIPS. A new disclosure will be introduced, however, requiring managers who have not gone through the rigour of the verification process to explicitly disclose the fact.

The reasoning behind the new disclosure is an attempt to educate the recipients of reports from GIPS compliant firms about independent verification in an effort to promote the activity.