Firm in existence for 5 years. They develop a model. Backtest for 10 yearsand disclose. Is it OK? I said No. You can’t provide more data than the firm’s life. Comments?
i went with yes … looked fine to me … they were reporting the backtested performance results of a model … doesn’t have anything to do with the firms life IMO … also, appropriate disclosures were in place
not an issue -disclosure was adequate
A. Yes
this wasn’t on my exam…
what about the AMC compliance one (Asia PM test). a)adopt cfai stds and amc b)operating officer as compliance officer c)get employees to disclose in writing that they understand the amc. pretty sure i got this wrong .i went with C also the last question in this set. i said there was no violation in claiming gips compliance even as verification was going on. verification is only recommended. not confident about these 2 in ethics.
I went with yes also, as it was disclosed, not sure tho
KRochelli Wrote: ------------------------------------------------------- > this wasn’t on my exam… I dont remember that either…
Dsylexic Wrote: ------------------------------------------------------- > what about the AMC compliance one (Asia PM test). > a)adopt cfai stds and amc > b)operating officer as compliance officer > c)get employees to disclose in writing that they > understand the amc. > > pretty sure i got this wrong .i went with C > > > also the last question in this set. i said there > was no violation in claiming gips compliance even > as verification was going on. verification is only > recommended. > > not confident about these 2 in ethics. For AMC compliance , I also marked C - ( employees agree in writing). Why do you think it is wrong? For GIPS Verification, I said that the firm could not make the statement as saying " …will be verified soon" implies that The firm’s compliance will definitely be verified as correct… This isn’t correct
I went with c on AMC compliance too.
LOL I went with c also
FOR AMC B, is definitely wrong as compliance officer should be independent from the investment and operations personnel. (CFAI 1 p.211) C, … I just haven’t hit it because only receipt of writing in understanding seem not really release the firm’s responsibility to enforce the compliance process. It’s a good point but not the best. Then i go to A, seem the best answer to me. FOR GIPS verification, i remember there is two choice regarding why it’s not correct. and I pick up the one that stating they require to receive a verification report. (should be C, if I remember correctly). In fact, it does require such document. (CFAI 6 p.294 ""After the firm has been verified, as evidenced by a verification report, …)