Ethical and Professional Standards Q142

0. Assume there are three parties who play different roles in the investment industry: Party 1: Calsoft Inc. is an investment management firm that manages assets worth $900 million. Party 2: Stan Inc. sponsors pension plans for its employees and encourages its employees to become participants. The money is professionally managed by an investment company. Party 3: Caltech Corp. is involved in the development of software for performance calculations that aids in achieving GIPS compliance. Which of the following parties can claim GIPS compliance?

  • Option : C
  • Explanation : Only investment management firms that actually manage assets can claim compliance. The other two cannot.
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