Ethical And Professional Standards - Ethical And Professional Standards Section 2
67. Which of the following statements regarding verification is least accurate?
- Option : B
- Explanation : Verification cannot be done for a fund or a composite. It is firm-wide just as claiming compliance is.
68. Which of the following is not a key feature of the GIPS standards?
- Option : A
- Explanation : It is not mandatory for non-fee paying portfolios to be included in at least one composite.
69. Which of the following is least likely a feature of the GIPS standards?
- A
The GIPS standards rely on the integrity of input data.
- B
Firms must comply with all requirements of the GIPS standards, including any updates, Guidance Statements, interpretations, Questions & Answers (Q&As), and clarifications published by CFA Institute and the GIPS Executive Committee.
- C
The GIPS standards promote the use of accurate and consistent investment performance data.
70. Which of the following statements is most likely correct?
- A
All actual, discretionary, fee-paying portfolios must be included in at least one composite defined by investment mandate, objective, or strategy.
- B
Only actual, non-discretionary, non-fee-paying portfolios must be included in at least one composite defined by investment mandate, objective, or strategy.
- C
Only actual, discretionary, non-fee-paying portfolios must be included in at least one composite defined by investment mandate, objective, or strategy
- Option : A
- Explanation : One of the key features of GIPS standards is that all actual, discretionary, fee-paying portfolios must be included in at least one composite defined by investment mandate, objective, or strategy in order to prevent firms from cherry-picking their best performance.
