Which of the following statements about GIPS verification is correct?

• A. Verification is required to claim compliance.
• B. Verification is prohibited.
• C. Verification is optional but recommended.
• D. Verification must be performed annually.

Answer: (C)

GIPS verification is about whether a firm’s performance presentations and supporting processes actually conform to the Global Investment Performance Standards. It is not required to claim compliance with GIPS, but having independent verification is strongly encouraged because it provides objective evidence that the firm’s policies and presentations align with the standards. The verification reinforces credibility with clients and prospects and helps catch and correct any inadvertent noncompliance. It isn’t mandated to occur every year; the firm may choose the timing and scope of verification, though many firms verify periodically to maintain credibility.