Verifier
The independent third party that carries out a GIPS verification of a whole firm, testing its composite construction and its policies for calculating and presenting performance. It does not certify any one composite's results.
Where you will meet it
Verifier appears in 2 learning outcomes on the CFA syllabus. A few of them:
- Discuss what the GIPS standards aim to achieve, whom they cover, and how they help investment managers as well as prospective clients and investors
“Compliance applies to the whole firm rather than selected products, and the standards contain provisions for investment firms, for asset owners reporting to their oversight bodies, and for verifiers.”
- Discuss why firms seek GIPS verification, what it covers and how it is carried out
“The verifier tests the firm definition, total firm assets, composite definitions and membership, samples portfolios, recalculates returns and reviews records, then issues a verification report.”
See also
Practise it
Practise verifier until it is automatic: questions that explain every wrong option.
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