Ethical And Professional Standards MCQ - Ethical And Professional Standards Section 2
Verification cannot be done for a fund or a composite. It is firm-wide just
as claiming compliance is.
It is not mandatory for non-fee paying portfolios to be included in at
least one composite.
- 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.
- 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
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.
