71. Which of the following is most likely a feature of the GIPS standards? GIPS standards:
foster the notion of industry “self-regulation” on a global basis.
encourage fair, global competition among investment firms without creating barriers to entry.
are ethical standards for investment performance presentation to ensure fair representation and full disclosure of investment performance.
firms should adhere to the minimum requirements of the GIPS standards, but adhering to the recommendations is optional.
firms should adhere to the minimum requirements and recommendations of the GIPS standards.
it is enough if firms comply with the standard related to Performance Presentation in the CFA Institute Standards of Practice Handbook.
Statements referring to the calculation methodology as being “in accordance,” “in compliance,” or “consistent” with the Global Investment Performance Standards, or similar statements, are prohibited.
Firms must provide a complete list of composite descriptions to any prospective client that makes such a request.
For periods beginning on or after 1 January 2010, total firm assets must be the aggregate fair value of all fee-paying portfolios managed by the firm.
Firm must be defined as an investment firm, subsidiary, or division held out to clients or prospective clients as a distinct business entity.
Total firm assets must exclude assets assigned to a sub-advisor.
Firms must document their policies and procedures used in establishing and maintaining compliance with the GIPS standards.