Firms claiming GIPS compliance must make every reasonable effort to provide a compliant presentation to which group?

• A. Existing clients
• B. Prospective clients
• C. Both existing and prospective clients
• D. Regulators

Answer: (B)

Providing a GIPS-compliant presentation to prospective clients is central to the standard’s purpose. When a firm claims GIPS compliance, the integrity and comparability of performance information are at stake, so there must be a reliable, accessible way for those who might hire the firm to review that information before making a decision. Making every reasonable effort to furnish a compliant presentation to prospective clients helps ensure fair, transparent disclosure and allows for proper evaluation against other firms. Regulators may request information under their own rules, and existing clients will receive ongoing reporting, but the GIPS obligation specifically targets prospective clients who are evaluating whether to engage the firm.