CFA Practice Question

There are 361 practice questions for this study session.

CFA Practice Question

According to the Global Investment Performance Standards (GIPS), when dealing with compliance, which of the following statements is NOT correct?

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.
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