Gold Dealer Assurance Programme designed to boost trust in global retail gold market

The programme aims to enable gold dealers and wholesalers to demonstrate their commitment to high standards of governance, customer protection and responsible business practices.

The BSI explains that the GDAP is now under way, with BSI auditors preparing to assess dealers and wholesalers for their compliance with the industry standard.

The GDAP was launched following the creation of the Gold Dealer Assurance Standard (GDAS), published by the World Gold Council (WGC) in August and developed with support from BSI and consultation with industry. The GDAS provides a set of globally recognised best practices for gold dealers.

With the GDAP now live, the BSI says gold dealers and wholesalers can be independently verified by the BSI against the GDAS. The BSI will conduct audits and verify dealers meeting the GDAS.

Dealers verified as meeting all GDAP requirements may use the Assured Gold Dealer name and logo and be listed in the accompanying programme directory.

The BSI explains that, while retail investment represents about one-quarter of yearly global gold demand, trust is a major barrier for investors. Hence, it notes that verification under the GDAS is designed to give investors greater confidence when choosing a gold dealer and buying bullion products.

Under the GDAP, the BSI will assess participating gold dealers in eight core areas.

These are fairness and integrity; transparency; protection of customer assets; regulatory compliance; responsible gold sourcing; commercial prudence; operational professionalism; and vaulted gold products and services.

The BSI explains that the GDAS applies to retail gold dealers and gold wholesalers that supply retail gold bullion products, including gold bars, coins, rounds and vaulted gold products and services.

Verification under the GDAP against the requirements of the GDAS is voluntary and will be awarded only following successful independent assessment.

To incorporate industry perspectives, the BSI says the GDAS was developed through an extensive consultation process involving more than 60 participants across 16 countries, generating over 120 consultation responses from across the global gold market.

Feedback has been reviewed and reflected in the framework, which is intended to evolve over time as market practices and regulatory expectations continue to develop.

“With the assurance programme now up and running, industry has clear guidance in place to ensure the highest standards are met across the retail gold market.

“By aligning with the standard, dealers will be sending a clear signal that they are committed to doing business responsibly and putting customers first. We are pleased to be opening up the GDAP audit programme as a first step in giving investors greater confidence in the gold market,” says BSI CE Susan Taylor Martin.

“The launch of the GDAS in August set out a clear framework of best practice for gold bullion dealers.

“With the BSI’s independent audit programme now live, dealers can put that framework into action and demonstrate their commitment to meeting its requirements and improving transparency in the market. This marks important progress towards building greater trust across the retail gold industry,” adds WGC CEO David Tait.