- CFA Exams
- CFA Level I Exam
- Study Session 1. Ethical and Professional Standards
- Reading 5. Global Investment Performance Standards (GIPS)
- Subject 3. The Nine Major Sections of the GIPS Standards
CFA Practice Question
Which is a key characteristic of GIPS?
A. The standards must be applied with the goal of achieving excellence in performance presentation.
B. The standards consist of required provisions for firms to follow to achieve best practice.
C. The standards rely on the integrity of input data.
Explanation: GIPS standards rely on the integrity of input data. The accuracy of input data is critical to the accuracy of performance presentations.
User Contributed Comments 1
| User | Comment |
|---|---|
| bretonpa | For me, excellence in performance representation was the major objectives (thus characteristic) of the GIPS. Surprised to see the answer as the integrity of input data as the key characteristic |