- CFA Exams
- CFA Level I Exam
- Study Session 1. Ethical and Professional Standards
- Reading 5. Global Investment Performance Standards (GIPS)
- Subject 1. Introduction: The Vision Statement, Objectives and Key Characteristics of GIPS Standards
CFA Practice Question
Which of the following is not correct regarding CFA Institute's GIPS?
A. A firm cannot claim that they were in compliance with the GIPS unless they comply in all required material respects with the GIPS.
B. The GIPS are explicitly incorporated in the Standards of Professional Conduct.
C. The GIPS are voluntary standards for the industry.
User Contributed Comments 5
| User | Comment |
|---|---|
| MUSK | I thought GIPS are voluntary, why is 'A' correct? |
| solnce | The Standards are voluntary, but some aspects of them are mandatory and some are recommended. It is your choice to comply with the GIPS or not. But if you decided to claim your complaince, then some aspects of the GIPS should be be done anyway and some may be or may not be done (verification, for example. It is only recommended). So, nothing is wrong with the notes. |
| coolnan | Thanks-solnce. |
| krisscfa | Solnce...good explanation |
| TammTamm | Thanks solnce, it makes sense now. |