Level III Core · Overview of the Global Investment Performance Standards

GIPS Advertising Guidelines for Advertisements Without Performance

Updated 8 October 2026 · Fact-checked

A GIPS-compliant advertisement without performance must carry the exact claim of compliance wording and information on how to obtain the firm's list of composite descriptions and, where relevant, its list of pooled fund descriptions. Solve questions by checking each advertisement against these items and the exact wording.

Understand GIPS Advertising Guidelines Without Performance

GIPS are voluntary ethical standards for calculating and presenting investment performance. A firm that claims compliance may advertise, but it must follow the GIPS Advertising Guidelines. The guidelines exist so that prospects are not misled by a compliance claim that is vague, partial or unsupported.

Advertisements fall into two groups. Some present performance. Others only mention the firm, its strategies or its GIPS status, with no return figures. This topic covers the second group. The test is simple: if the advertisement states compliance but shows no performance, the shorter requirements apply.

There are two building blocks. First, the claim of compliance, in the prescribed wording: "[Name of firm] claims compliance with the Global Investment Performance Standards (GIPS®)." Second, information on how to obtain the firm's list of composite descriptions and, where relevant, its list of pooled fund descriptions, so a prospect can ask for the full picture.

The wording matters. A firm cannot claim partial compliance, such as compliance "except for" some requirements, and it cannot claim that a portion of the firm complies. It may not change the claim to say something else, such as that the firm is "GIPS-approved" or that GIPS has endorsed it. GIPS compliance is self-declared by the firm, and neither CFA Institute nor GIPS endorses or approves firms.

On the exam, you are usually given a short advertisement and asked what is missing or what is wrong. Your job is to compare it with the two building blocks and to spot any statement that breaks the compliance claim rules.

Key rules to remember

Claim of compliance wording: "[Name of firm] claims compliance with the Global Investment Performance Standards (GIPS®)."; Use this wording. Do not add qualifiers, and do not say compliance is partial.
Required items: advertisement without performance: Claim of compliance + how to obtain the list of composite descriptions (and the list of pooled fund descriptions, where relevant); Check the exact list in the official GIPS text supplied. Missing either item makes the advertisement non-compliant.
Which guidelines apply: Claims compliance + advertises + shows no performance → use the without-performance requirements; If performance is shown, the longer requirements for advertisements with performance apply instead.
Prohibited claims: No partial compliance, no compliance for part of a firm, no claim that GIPS approved or endorsed the firm; Compliance is claimed by the firm itself.

How to solve GIPS Advertising Guidelines Without Performance questions

Use this method for any question that gives you an advertisement or asks what a GIPS advertisement must contain.

1Decide whether the advertisement claims GIPS compliance. If it does not claim compliance, the Advertising Guidelines do not apply to it.
2Check whether it shows performance. If none is shown, use the requirements for advertisements without performance.
3Check the claim wording against the prescribed sentence, including the firm name and the GIPS® reference. Look for qualifiers such as "except" or "most".
4Check that it tells the reader how to obtain the list of composite descriptions and, where relevant, the list of pooled fund descriptions.
5Scan for prohibited statements: partial compliance, compliance of only part of the firm, or approval or endorsement by GIPS or CFA Institute.
6Write the answer in the command word asked: identify, state, or explain. Name each missing or faulty item and give the correction.

Quickest way: Two-item checklist

When to use it: Short vignette with a draft advertisement and a question on what is missing or wrong.

Tick off: claim wording, and how to obtain the list of composite descriptions (and pooled fund descriptions, where relevant).
Circle any qualifier or endorsement language in the text.
Answer with the missing items first, then the faulty wording, in the order the question asks.

Common mistakes in GIPS Advertising Guidelines Without Performance

Applying the with-performance requirements to an advertisement that shows no returns.
Students memorise one long list of advertising requirements and do not split it by whether performance appears.
Fix: Ask first: is any performance shown? If not, use the short list of two items.
Accepting a claim of compliance that has a carve-out, such as compliance "except for" one requirement.
It sounds honest and reasonable, so it feels acceptable.
Fix: GIPS compliance is all-or-nothing. A partial claim is not permitted.
Adding requirements from the with-performance list, such as a firm definition, to an advertisement without performance.
Students blend the two lists and treat every item as required everywhere.
Fix: For an advertisement without performance, require only the claim of compliance and the information on how to obtain the composite and pooled fund lists.
Saying the advertisement is fine because the firm has been verified.
Verification is mixed up with the advertising requirements.
Fix: Verification is voluntary and does not replace any required advertising item. Check the required items regardless.
Treating GIPS as approved or endorsed by CFA Institute and writing that in the advertisement.
The standards are published by CFA Institute, so students assume it certifies firms.
Fix: Compliance is self-claimed by the firm. Any wording implying endorsement is a violation.
Changing the claim wording to a paraphrase in an answer or in a redraft.
Students rely on the meaning rather than the exact sentence.
Fix: Learn the exact sentence and reproduce it, with the firm name in place.

Worked examples

Example 1

Meridian Asset Partners publishes a brochure that says: "Meridian Asset Partners is a global equity manager and complies with GIPS except for its private equity strategy." The brochure shows no performance figures. Identify what is wrong and what is missing under the GIPS Advertising Guidelines.

Show the solution

The brochure claims compliance and shows no performance, so the requirements for advertisements without performance apply.
The claim is wrong. It states compliance with an exception, which is a partial claim. The firm must use the prescribed wording: "Meridian Asset Partners claims compliance with the Global Investment Performance Standards (GIPS®)."
The brochure gives no information on how to obtain the firm's list of composite descriptions and, where relevant, its list of pooled fund descriptions. This is required.

Answer: The brochure uses a prohibited partial claim of compliance, and it omits information on how to obtain the firm's list of composite descriptions and, where relevant, its list of pooled fund descriptions. It must be redrafted with the prescribed claim wording and the missing information.

Example 2

Which statement about a GIPS-compliant advertisement that contains no performance is most accurate?
A. It need only state that GIPS has approved the firm.
B. It must include the claim of compliance and information on how to obtain the list of composite descriptions and, where relevant, the list of pooled fund descriptions.
C. It may claim compliance for one division of the firm.
D. It need contain no GIPS wording if no returns are shown.

Show the solution

Option A is wrong. GIPS and CFA Institute do not approve or endorse firms, and the claim is made by the firm.
Option C is wrong. The claim covers the firm as defined. Compliance for only part of the firm is not permitted.
Option D is wrong. If the advertisement claims compliance, it must carry the required wording even with no performance shown.
Option B matches the required items.

Answer: B

Exam tips

Expect a short draft advertisement and a command word such as identify or state. Name each missing item separately so each earns its own point.
Learn the claim sentence word for word, including the GIPS® reference. Write it out exactly if asked to redraft.
Always state your first decision: does the advertisement show performance? It sets which list applies.
Watch for distractors on partial compliance, partial-firm compliance and endorsement by GIPS. They are always wrong.
No penalty for wrong answers applies to the item-set questions, so answer every multiple-choice item.

GIPS Advertising Guidelines Without Performance: frequently asked questions

What must a GIPS advertisement without performance include?

It must include the claim of compliance in the prescribed wording and information on how to obtain the list of composite descriptions and, where relevant, the list of pooled fund descriptions. Check the official GIPS text supplied for the exact list.

What is the exact GIPS claim of compliance wording?

"[Name of firm] claims compliance with the Global Investment Performance Standards (GIPS®)." The firm name goes in the brackets. No qualifiers may be added.

Can a firm say it is partly GIPS compliant in an advertisement?

No. Compliance cannot be partial, and a firm cannot claim that only a part of the firm complies. A claim with exceptions is a violation.

Does GIPS or CFA Institute approve a firm's advertisement?

No. The firm claims compliance itself. CFA Institute and GIPS do not approve, endorse or certify firms, and an advertisement must not imply that they do.