Ethical And Professional Standards MCQ - Ethical And Professional Standards Section 2

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:

A compliant presentation must have the composite in which the client’s portfolio is included.

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?

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.

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?

Refer Historical Performance Record section of the GIPS Standards

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?

Refer Historical Performance Record section of the GIPS Standards.

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?

Refer Historical Performance Record section of the GIPS Standards