- CFA Exams
- CFA Level I Exam
- Topic 10. Ethical and Professional Standards
- Learning Module 4. Introduction to the Global Investment Performance Standards (GIPS)
- Subject 4. Fundamentals of Compliance
CFA Practice Question
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.
Correct Answer: B
If there is any discrepancy between different languages, the English version of the GIPS is the controlling version, not the language of the country involved.
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. |