- Global acceptance of calculation of investment performance in a fair, comparable format.
- Consistent accurate performance data.
- Promote fair competition.
- Self Regulation.
- 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.
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?
- Firm must follow GIPS, because GIPS is a global standards.
- Firm must follow country specific regulations.
- Firm must follow country specific regulations but must disclose the nature of the conflict.
The correct answer is C. Firm must follow country specific regulations but must disclose the nature of the conflict.
Which of the following is least likely to be included in all advertisements that include a claim of compliance with the GIPS advertising guidelines?
- Description of the firm.
- Total return calculation methodology.
- The GIPS advertising guidelines compliance statement.
The correct answer is B. Total return calculation methodology.