GIPS Question from QBank

Which of the following is NOT a key characteristic of the Global Investment Performance Standards (GIPS)? GIPS: A) represent the highest performance measurement and presentation practice worldwide. B) require managers to include all actual fee-paying and non-fee-paying discretionary portfolios in composites defined according to similar strategy and/or investment objective. C) are ethical standards for investment performance presentation to ensure fair representation and full disclosure of an investment firm’s performance history. D) require firms to use certain calculation and presentation methods and to make certain disclosures along with the performance record.

I believe that the inclusion of non-fee paying accounts in composites is optional under the GIPS.

I believe you are correct, chebychev.

I think the answer is D because it doesn’t ask you to calculate in a certain way.

vishal, D is definitely a characteristic of GIPS. I’d also go with B for the reasons above, even though A sounds a bit…overbearing.

B definitely

I am going with B. (non-fee paying portfolios are not required but recommended). what’s the answer?

B was right. Here’s more: According to the CFA Institute Code of Ethics, CFA Institute Members and Candidates must do all of the following EXCEPT: A) practice their profession in an ethical manner. B) act with integrity and dignity. C) not knowingly violate the securities acts and laws. D) exercise independent judgment. (This one is actually fairly easy, except… where does dignity come into any of this??)

I do not believe that undignified conduct is proscribed by the Code of Ethics.

I’d go with C

C is not stipulated in the Codes, but rather in the Standards. definitely C.