CFA Practice Question

There are 361 practice questions for this study session.

CFA Practice Question

Which of the following is most appropriate? A firm can claim compliance ______
A. if its track record is less than five years.
B. with a moving window of five-year compliance results.
C. without all of its composites meeting the GIPS requirements.
Explanation: If the firm has been in existence for less than five years, it can claim compliance since its inception. Disclosure of this fact is required.

User Contributed Comments 2

User Comment
JHumphrey22 what exactly is A referring to here? It says that it can claim "complliance" since inception. So essentially they have a clean slate for the first 5 years of operations?
SKIA JHumphrey22 - It is saying that a Firm can still claim compliance if it has only been in existence for less than 5 years. It is saying they have a "clean slate" as you put it, from inception to the current date (even if the current date has not met the 5 year period).
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