GIPS quiz: firm concept potential, following, management, investment, Investment

DoubleDip

Whenever an investment management firm presents its investment performance as being in compliance with the Global Investment Performance Standards (GIPS), it must state how it defines itself as a firm. Under GIPS, a firm may define itself for the purpose of claiming GIPS compliance using any of the following options EXCEPT when:
A) all assets are managed to one or more base currencies.

B) an investment firm, subsidiary, or division is held out to clients or potential clients as a distinct business unit.

C) the subsidiary or division of a company claims GIPS compliance when the parent company is GIPS compliant.

ohai

Kwonyboy Wrote:
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> C


Right, it is C.

A looks weird to me too.... Is it ok to define 'firm' based on the currency managed?

skycfa

not sure. but I kinda ignored A because it doesn't make sense to me. I just know that C is incorrect because a sub or divi of a company can't just claim compliance if the parent is compliant.

Unforseen

Kwonyboy Wrote:
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> not sure. but I kinda ignored A because it doesn't
> make sense to me. I just know that C is incorrect
> because a sub or divi of a company can't just
> claim compliance if the parent is compliant.


Same. I chose C, but A looks very wrong to me too. Hope this type of q does not appear on June day.

strikethree

A isn't wrong; it's just saying a "firm" in GIPS terminology can use multiple currencies in its management (as opposed to saying a firm had to subdivide and obtain GIPS compliance in all its currencies). So that's a true statement, and not the answer.

Valores

C

NO EXCUSES