A firm claims GIPS compliance but fails to provide required disclosures. Which Standard is violated?

• A. Standard IV.D (GIPS)
• B. Standard VI.B Priority of Transactions
• C. Standard V.B Communication with Clients and Prospective Clients
• D. Standard IV.A Loyalty, Prudence, and Care

Answer: (A)

When a firm claims GIPS compliance, the claim must be accompanied by the required disclosures. These disclosures spell out what is being claimed, the scope of the firm’s GIPS compliance, and any details about verification status, composites, and calculation methodologies. Without these disclosures, the GIPS claim is incomplete and potentially misleading.

Therefore, failing to provide the mandated disclosures after asserting GIPS compliance breaches Standard IV.D (GIPS). The other standards address different duties—like how transactions are prioritized, how communications with clients should be conducted, or fiduciary duties—but they do not govern the specific disclosure obligations that accompany a GIPS claim.