CFA Level 1 | zwcy3zc | Question Understanding GIPS Compl...

Ethical and Professional Standards

Understanding GIPS Compliance

Very Hard Global Investment Performance Standards Overview Of Gips

The Global Investment Performance Standards (GIPS) is a set of standardized, industry-wide ethical principles that a firm can voluntarily follow to ensure fair representation and full disclosure of its investment performance. Understanding these standards is crucial for maintaining credibility and trust in the investment management industry.

Which of the following statements regarding the GIPS is TRUE?

GIPS apply only to equity investment firms and are not applicable to fixed income or multi-asset firms.

GIPS require firms to calculate and present performance in a manner that is consistent and comparable across firms.

GIPS were established by the SEC and are mandatory for all investment managers in the United States.

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