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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. |
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® 2024 Level I Curriculum, Volume 6, Module 4.