- CFA Exams
- CFA Level I Exam
- Topic 10. Ethical and Professional Standards
- Learning Module 72. Introduction to the Global Investment Performance Standards (GIPS)
- Subject 4. Fundamentals of Compliance
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). |