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Objective

  • Global acceptance of calculation of investment performance in a fair, comparable format.
     
  • Consistent accurate performance data.
     
  • Promote fair competition.
     
  • Self Regulation.

Characteristics
  • Firm: Distinct Business Entity.
     
  • Fair Representation and Full Disclosure of results.
     
  • Composite presentation for 5 years.
     
  • Specific calculation disclosure required.
     
  • Contain both required and recommended Provisions.
     
  • No Partial Compliance.
     
  • Follow Local law; disclose conflict.

Quesstion:

Which of the following should be the course of action for a firm which is located in a country with existing performance reporting standards and these regulations conflicts with GIPS?
 

  1. Firm must follow GIPS, because GIPS is a global standards.
     
  2. Firm must follow country specific regulations.
     
  3. Firm must follow country specific regulations but must disclose the nature of the conflict.

Ans:

The correct answer is C. Firm must follow country specific regulations but must disclose the nature of the conflict.
 

Question:

Which of the following is least likely to be included in all advertisements that include a claim of compliance with the GIPS advertising guidelines?
 

  1. Description of the firm.
     
  2. Total return calculation methodology.
     
  3. The GIPS advertising guidelines compliance statement.

Ans:

The correct answer is B. Total return calculation methodology.





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