A firm reports GIPS-compliant performance but fails to provide required disclosures. Which Standard is violated?

• A. Standard IV.D (GIPS)
• B. Standard V.C Record Retention
• C. Standard VI.A Disclosure of Conflicts
• D. Standard I.C Misrepresentation

Answer: (A)

When a firm presents performance as GIPS-compliant, it must accompany that presentation with the required disclosures about methodology, composites, data sources, and any limitations or deviations. Those disclosures ensure readers understand exactly how the performance was calculated and what is included or omitted. Omitting these required disclosures means the GIPS presentation is incomplete and potentially misleading, which violates the standard that governs GIPS presentations and reporting of performance. The other standards address different issues (like record retention or conflicts) and do not specifically capture the failure to provide the mandated disclosures with a GIPS-compliant report.