CFA CFA Level 1 CFA Level 1 Question of the Week – Ethical and Professional Standards

CFA Level 1 Question of the Week – Ethical and Professional Standards

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    • Matt_AnalystPrep
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      Peter Pasco is the founder of Lios Asset Management. The firm began claiming compliance with the GIPS standards seven years ago, at which time the firm produced six years of historical compliant investment performance. Today, what is the minimum number of years of compliant performance history Lios Asset Management has to present?

      • A. 5
      • B. 10
      • C. 13
    • Matt_AnalystPrep
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      The correct answer is B. 

      GIPS are ethical standards for investment performance presentation to ensure fair representation and full disclosure of investment performance. In order to claim compliance, firms must adhere to the requirements included in the GIPS standards.

      A firm must produce 5 years of compliant performance history when it initially claims compliance. After this, the firm must add years of performance up to a minimum of 10 years of compliant performance history.

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