tycoon

Which of the following best describes the underlying principles upon which the Global Investment Performance Standards (GIPS) are based?

A) Fair and consistent application of a global set of regulatory requirements.

B) Fair treatment of entities associated with securities law infractions.

C) Uniformity and consistent application of standards for the global regulation of the securities industry.

D) Full disclosure and fair representation of performance results.

---

Answer and Explanation

The GIPS standards are a set of voluntary standards based on the fundamental principles of full disclosure and fair representation of performance results.

tycoon

Which of the following statements most accurately describes why the Global Investment Performance Standards (GIPS) were created? To:

A) meet the need for a single globally accepted set of regulatory guidelines among developed securities markets.

B) provide comparability of performance results among nations for which no presentation guidelines currently exist.

C) meet the need for a single globally accepted set of investment performance presentation standards.

D) expand the extent of the influence of the CFA Institute.

---

Answer and Explanation

Recognizing the need for one globally accepted set of investment performance presentation standards, CFA Institute sponsored and funded the Global Investment Performance Standards Committee to develop and publish a single global standard by which all firms in all countries calculate and present performance to clients and prospective clients.