CFAI p119 Vol 1 question 29. Answer: “No, because terminated accounts are excluded” Now page 65 in the paragraph “Recommended Procedures for Compliance” “including terminated accounts as part of performance history” Can some one explain to me how is it possible?
Ternimated accounts are excluded going forward. Must maintain historical performance.
He is speaking in tongue!!! Someone get the holy water!!
pimp Wrote: ------------------------------------------------------- > Ternimated accounts are excluded going forward. > Must maintain historical performance. Pimp, did you read my second statement? It is RECOMMENDED
In the performance presentation statement in the question, it says “…which is composed of active accounts only”, essentialy they are excluding terminated accounts. Procedures for compliance on p.65 say that terminated accounts must be included as part of performance history. Hence, the compliance policy statement doesn’t conform with CFAI standards.
comp_sci_kid Wrote: ------------------------------------------------------- > pimp Wrote: > -------------------------------------------------- > ----- > > Ternimated accounts are excluded going forward. > > > Must maintain historical performance. > > > Pimp, did you read my second statement? It is > RECOMMENDED Did you read your own post? The word ‘history’ was used, eh?
also, you excluse terminated from annual returns for the year of termination. you never annualize terminated. word.
volkovv which paragraph?
needhelp Wrote: ------------------------------------------------------- > also, you excluse terminated from annual returns > for the year of termination. you never annualize > terminated. word. thats GIPS
CFAI v6 page 303: “under the GIPS standards, a firm must include a terminated portfolio in the historical record of the appropriate composite up to the last full measurement period” notice it says must.
stirke i agree but that is under GIPS and not under Standards
some one has to help me out here. I am losing it 
I dont understand your question. The word ‘history’ is clearly states, Include in historic data and stop including in current data.
csk, I think you have GIPS mindset of what required vs. recommended mean put your code of ethics cap on, the standards itself are very broad, for instance Performance Presentation standards say: “…requires members and candidates to provide credible performance presentation to clients and prospective clients and to avoid misstating performance or misleading clients and prospective clients about investment performance of members or candidates or their firms” this statement doesn’t tell you literally every thing that you are required to do or not to do, and is subject to interpretation now under “Recommended Procedures for Compliance” CFAI gives guidance on how to follow this particular standard. This format is used for every other standard
you’re right but your question sounds more like a GIPS than an ethics question. and i’m going to assume that GIPS and ethics compliment each other (i.e. they wouldn’t tell us to do one thing in ethics and then the opposite in GIPS). but to be honest i dont’ recall any performance presentation stuff in the ethics book itself.
comp_sci_kid Wrote: ------------------------------------------------------- > volkovv which paragraph? p. 118 under “Performance Presentation” blurb, end of first sentence
volkovv Wrote: ------------------------------------------------------- > comp_sci_kid Wrote: > -------------------------------------------------- > ----- > > volkovv which paragraph? > > p. 118 under “Performance Presentation” blurb, end > of first sentence dude, i am reading through recommended stuff and it does sound like recommended and not required, how do you know “recommendation” is really a “suggestion”?
meltdown!
I think as far as Ethics Standards of Professional Conduct are concerned all of these sections labeled “Recommended Procedures of Compliance” after description of each Standard should be taken as gospel in terms of how each respectful standard should be followed. Before we were introduced to GIPS, I don’t think this was an issue, since we were given a Standard, were told how to follow it, and that was it. Now with GIPS we have to remember what is required vs. what is recommended, with Etics I don’t think its the case.
nm, volkovv is right, as always… ok… i think i reached the point of no return on this one. G-d PLEASE HELP ME GET THROUGH THIS 2 LAST WEEKS