Jones, Inc., is attempting to qualify for Global Investment Performance Standards (GIPS) compliance. Regarding mandatory disclosures, which of the following disclosures will be insufficient and thus prevent Jones, Inc., from claiming compliance?
A) Jones’ definition of the firm is that they are a brokerage/portfolio management firm registered with the Securities and Exchange Commission (SEC).
B) Jones makes available a complete list and description of all of the firm’s composites.
C) Jones discloses all firm assets under active management each period.
D) Jones discloses all nonfee paying portfolios that are included in composites and notes the percentage of composite assets that are nonfee paying portfolios.
The correct answer is C. Does anyone know why D is incorrect? I thought the GIPS doesn’t cover nonfee paying portfolios……………….
