GIPS: Schweser book 1, page 91, question 50 (SelfTest: Ethi standards, following, its, objective

shootingstar

Schweser says the following statement does not accurately describe a GIPS objective:
“GIPS try to provide an opportunity for large and smal firms to compete on an equal footing by imposing external rules and regulations.”
In its answer, it says this statement is incorrect and says “GIPS seek to promote global self regulation through voluntary acceptance and adherence to the standards.”
I don’t quite see their point or the distinction here. Are they saying GIPS are not external rules or regulations and instead are standards that participants are voluntarily submitting themselves to?

cyber21

I reckon the distinction is in the words ‘impose’ vs ‘promote’ and ‘voluntary’. GIPS does not impose rules. It promotes standards and encourages voluntary acceptance.