Which of the following statements regarding the Performance Presentation Standards is false? A. The PPS standards are voluntary standards for the industry. B. The PPS standards are explicitly incorporated in the Code of Ethics and Standards of Professional Conduct. C. One of the stated goals of the Standards is to achieve greater uniformity and comparability among performance presentations. D. Some aspects of the PPS are mandatory (i.e., they must be followed to claim compliance); other aspects are recommended (i.e., they should be followed). Which of the following is/are correct under the Code and Standards? I. Members are prohibited from undertaking independent practice in competition with their employer. II. Written consent from the employer is necessary to permit independent practice that could result in compensation or other benefit in competition with a member’s employer. III. Written consent from the outside perspective client is necessary to permit independent practice that could result in compensation or other benefit in competition with a member’s employer. IV. Members are prohibited from making arrangements or preparations to go into a competitive business before terminating their relationship with their employer. A. IV only. B. I and IV only. C. II and III only. D. II, III, and IV only.
Would also say B C But on Q1… PPS are not mandatory for the industry, are they. As part of code, they only apply to CFA members/candidates… they are not universal laws.
I thought PPS referred to GIPS, which are not mandatory for the industry or CFA members in particular. It is a voluntary step.
why this is false: The PPS standards are explicitly incorporated in the Code of Ethics and Standards of Professional Conduct. If you get written permission from your employer, can you undertaking independent practice in competition with their employer.
wait you just confused me with that post, answers are what?
I would say B (Code of Ethics and Standards of Professional Conduct are part of Standards of Pratice Handbook while PPS are part of GIPS) A (as Portfolio said)
nhung.tran-statement IV is false for the reason Portfolio said. The question asks what is correct/true. Might wanna double check that.
Question 2 is definitely NOT A. You can make preparations for competing with employer without permission – you simply cannot start competing until you have permission.
Okay I have mistaken the explanation of Portfolio. But for me, you can have independent pratice with written consent from both parties (your employer and clients) but you can’t go into a competitve business (even prepare for it) before terminating relationship with your employer
definitely go for A…
Answers are B C
A is the most wrong answer there is. You can most definitely prepare for competitive business before leaving your employer. You can rent office space, buy furniture, all of that before you leave your current job. As long as you do not start doing business you are just fine.
thank you Portfolio, good questions. with 15% of the exam on this stuff it is great to keep fresh.
yeah I want to get a fine score in this part but still need to revise more
still have time, rock and roll