Question:

Which of the following statements does not accurately represent the objectives of Global Investment Performance Standards (GIPS)? The GIPS standards: 
A. ensure consistent, accurate investment performance data in the areas of reporting, records, marketing, and presentations. 
B. obtain global acceptance of calculation and presentation standards in a fair, comparable format with full disclosure. 
C. promote fair competition among investment management firms in all markets by requiring common fee structures.

Answer = C 
One of the objectives of the GIPS standards is to promote fair competition among investment management firms in all markets; this objective does not require unnecessary entry barriers or hurdles for new firms, such as common fee structures.

CFA Level I
“The GIPS Standards,” CFA Institute
Fundamentals of Compliance9

 

 

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