Killed it on levels 1 and 2, and was confident going into it.

This time its completely different… not sure if they are tricker or im not spending enough time…

One thing that im worried about is topics that overlap between the Standards , GIPS, and Asset manager code. Can anyone think of policies that are in all 3 but are different?

I was going through CFA text and saw that record renetion for 7 years is recommended if there is no applicable laws… If thecountry law says 5 years then you are in compliance with CFA standards…

WTF? i always thought it was 7.

I’ve seen this also. Based on what I’ve seen they’ll be comparing 5 yrs to 5 years. But I think the gold standard is 7 years.

is the CFA standard 5 yrs for required and 7 yrs for recommended?

i have a conflict with ethics and GIPS.

not sure if you saw the Weiying Shao Case in Ethics but it says something like.

is shao violating the stardard for

  1. conflict of interest

  2. no violation

  3. violation for using simulated returns in performance.

the answer is no violation.

tell me how ethics allows simulated returns but GIPS doesn’t??

For the record retention. The Asset managers code state that managers must determine the appropriate minimum time frame for keeping the organisations records. Unless otherwise required by local law or regulation managers should keep records for at least seven years. So it’s optional for the manager to chose more restrictive than current law. In case the company has no specific law to cover this issue you must follow the 7 years. As for the simulated performance. In GIPS the purpose is to present the accurate portfolio performance to clients and not to mislead them. But in ethics the simulated performance is just a presentation to offer a product and must be disclosed. The purpose in ethics is you can present whatever you want as long as you disclosed it and reflect your opinion if itS not fact.

Simulated is okay but cannot be included with composite. So, you could create some new methodology (yeah right, they’ve all been done already) and disclose it separately.

Almost like - ‘we’re back testing this, it’s in the pipeline, your results would have been’