Why should I choose AnalystNotes?
Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.
Basic Question 5 of 6
According to the Global Investment Performance Standards (GIPS), when dealing with compliance, which of the following statements is NOT correct?
B. If there is any discrepancy between different languages, the language of the country involved will be the controlling version.
C. Firms are strongly recommended to comply with the recommended section of the standards.
D. In order for a firm to claim compliance with the GIPS, they must comply with the required section of the standards.
A. If there is any discrepancy between different languages, the English version of the GIPS is the controlling version.
B. If there is any discrepancy between different languages, the language of the country involved will be the controlling version.
C. Firms are strongly recommended to comply with the recommended section of the standards.
D. In order for a firm to claim compliance with the GIPS, they must comply with the required section of the standards.
User Contributed Comments 7
| User | Comment |
|---|---|
| surob | D: As long as firms are in compliance with required part of the standard, they are considered compliant with GIPS. |
| Nikita | Why is D correct? |
| Khadria | Why D is correct? See Objectives and Key Characteristics section: Key characteristics * Two components: requirements and recommendations. Requirements - necessary for compliance Recommendations - not necessary for compliance |
| Challs | are you people seriously asking why D is correct? |
| jainrajeshv | If some one what to claim that they are in compliance with GIPS then it is but obvious that they should comply with GIPS |
| johntan1979 | Those who can't understand why D is correct probably have English language difficulties. |
| Inaganti6 | @johntan. True. But not everyone here has English as the mother tongue. |
Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh
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.