What is the recommendation regarding third-party GIPS verification?

The recommendation regarding third-party GIPS verification is that it is recommended but not required. This means that while obtaining a third-party verification can enhance the credibility of a firm’s claim of compliance with the Global Investment Performance Standards (GIPS), it is not a necessary step to make such a claim. Firms often choose to undergo this verification to provide additional assurance to clients and stakeholders regarding their GIPS compliance, which can help improve trust and attract more business, but it is ultimately at the discretion of each firm.

Other options may imply a requirement or an obligation for third-party verification, which is not aligned with the GIPS framework's intention. GIPS compliance focuses on fair representation and full disclosure of investment performance, and while verification can support this, it is not a mandatory step for compliance with the standards.