Ethical And Professional Standards - Ethical And Professional Standards Section 2

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81. According to the Fundamentals of Compliance section, what are firms recommended to provide to each existing client on an annual basis? A compliant presentation of:

  • Option : B
  • Explanation : A compliant presentation must have the composite in which the client’s portfolio is included.
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82. If a composite has been in existence for less than five years, then for what period is the firm most likely required to present GIPS- compliant performance?

  • Option : C
  • Explanation : If a firm has been in existence for less than five years, then a firm is required to present compliant presentation since the firm’s inception date, or the composite inception date.
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83. GP Asset Management Company is defined as a firm according to GIPS standards. The firm’s inception date is 1 January 2013, and it has been in existence for less than five years. After it builds up GIPS-compliant performance for five years until 31 December 2017, is the firm required to add additional years of GIPS-complaint performance?

  • Option : C
  • Explanation : Refer Historical Performance Record section of the GIPS Standards
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84. PA Asset Management Company is defined as a firm according to GIPS standards. The firm’s inception date is 1 January, 1998. It is now 1 January, 2014. The firm claims compliance with GIPS Standards from 1 January, 2000. Is the firm allowed to link non-GIPS compliant performance to GIPS complaint performance?

  • Option : A
  • Explanation : Refer Historical Performance Record section of the GIPS Standards.
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85. PA Asset Management Company is defined as a firm according to GIPS standards. The firm’s inception date is 1 January, 2000. It is now 1 January, 2014. The firm claims compliance with GIPS Standards from 1 January, 2006. Is the firm allowed to link non-GIPS compliant performance to GIPS complaint performance?

  • Option : B
  • Explanation : Refer Historical Performance Record section of the GIPS Standards
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