- CFA Exams
- CFA Level I Exam
- Topic 10. Ethical and Professional Standards
- Learning Module 72. Introduction to the Global Investment Performance Standards (GIPS)
- Subject 1. Why were the GIPS Standards Created?
CFA Practice Question
Which one of the following is least likely to be a reason why the GIPS were created?
A. Clients and prospective clients reside in difference countries, and investment management firms have operations in multiple countries.
B. Many countries have not established comprehensive investment performance standards.
C. GIPS were established to compete with the European-based mandatory global investment performance standards.
Explanation: GIPS were created to fill the void of a globally recognized investment performance standard, not to compete with European standards. There are no mandatory global standards.
User Contributed Comments 3
| User | Comment |
|---|---|
| evefrangie | Least likely. |
| thebkr7 | Got me too. Getting better though |
| gyee2012 | I should of gotten this question. GIPS standards are used to compare against other investment. Setting the standards |