Which of the following issues is NOT included in the Fundamentals of Compliance section of the Global Investment Performance Standards (GIPS)?

• A. Replicating performance.
• B. Properly defining the firm.
• C. Documenting firm policies and procedures used in establishing and maintaining compliance with the Standards.
• D. Ensuring independent verification is always performed.

Answer: (A)

The Fundamentals of Compliance section focuses on the governance and control mechanisms a firm uses to claim and maintain GIPS compliance. It emphasizes clearly defining the firm’s scope, documenting the policies and procedures that keep the firm aligned with the Standards, and having independent verification to provide third-party assurance of compliance. Replicating performance, however, is not a topic in this section; it relates more to how performance data are calculated and presented rather than to the firm’s compliance framework itself. This is why replicating performance is the best answer for what is NOT included. The other items fit because properly defining the firm, documenting policies and procedures, and ensuring independent verification are all central to establishing and sustaining compliance with GIPS.