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Basic Question 1 of 6
According to the Global Investment Performance Standards (GIPS), when dealing with compliance, which of the following statements are correct?
II. Independent third parties may assist with performance measurement and composite construction.
III. Software suppliers can assist managers in complying with the GIPS but they themselves cannot claim compliance to the GIPS.
I. Independent third parties may not be used to enhance firms' performance measurement activities.
II. Independent third parties may assist with performance measurement and composite construction.
III. Software suppliers can assist managers in complying with the GIPS but they themselves cannot claim compliance to the GIPS.
User Contributed Comments 5
| User | Comment |
|---|---|
| Khadria | Why "Software Suppliers" are not firms? |
| nike | they are not THE Firms defined in the GIPS. |
| studyprep | Software suppliers are firms, by virtue. But here we are talking about Financial firms that provide Financial instruments (e.g. mutual funds and so on) for the investors and who wants to claim compliance of the GIPS. |
| AUAU | Here 'firm' refers investment firm not suppliers firm that make no investment decision but only assist in presenting the results. |
| johntan1979 | Note the word "assist", not control. |
I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
describe the fundamentals of compliance, including the recommendations of the GIPS standards with respect to the definition of the firm and the firm's definition of discretion
CFA® 2025 Level I Curriculum, Volume 6, Module 4.