Loading...
CFA Level 1
Ethical and Professional Standards

Ethical Reporting under GIPS Verification

Very Hard Global Investment Performance Standards Verification

As an investment firm, Global Wealth Advisors (GWA) claims adherence to the Global Investment Performance Standards (GIPS) and undergoes verification by an independent third party every three years. Last year, GWA implemented a new investment strategy and only began reporting performance from this strategy in the current year. Due to the competitive market, GWA decides to include the recently reported performance figures in its GIPS-compliant report but without waiting for the next verification cycle, as they believe the performance represents a significant leap in their capabilities.

What is the most appropriate ethical course of action regarding GWA’s decision to report this new performance without verification?

Hint

Submitted9.7K
Correct8.7K
% Correct89%