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Basic Question 4 of 6
Select the correct statement(s).
II. Firms can use third-party performance measurement only if the third-party is GIPS-compliance.
III. Third parties can construct GIPS-compliance composites for firms.
I. Firms cannot adopt the revised GIPS standards for performance presentations of 2005.
II. Firms can use third-party performance measurement only if the third-party is GIPS-compliance.
III. Third parties can construct GIPS-compliance composites for firms.
User Contributed Comments 4
| User | Comment |
|---|---|
| AUAU | Why "II" not correct |
| adamzell | The third-party cannot be GIPS-compliant if it doesn't manage assets, by definition. |
| williamko | For the explanation of the answer I, the revised GIPS standards were adopted in 2010 and effective on 1 Jan 2011 which I found in the study notes. |
| UcheSam | Third-party firm might be GIPS compliant but design composites that is not GIPS compliant. So, investment firm getting composite should focus on the composite being compliant not the third-party firm. |
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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.