CFA CFA Level 3 GIPS

GIPS

  • This topic has 29 replies, 9 voices, and was last updated Apr-17 by padniaki.
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    • Marc
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      How does GIPS get tested?

    • Sophie Macon
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      Funny you say this @marc – I remembered I was messing up this section so badly in practice papers that I spent 1 day making notes on this and nothing came out in for my exam.

      It’s definitely part of item sets, but I have seen them appeared (sub parts) of an essay question.

    • Sophie Macon
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      For example, this Level 3 sample item set from CFAI has plenty of GIPS questions. Haven’t found an essay one, but that doesn’t mean it couldn’t be in there.

    • Marc
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      @Sophie,

      Just so you know, it does not appear that GIPS has shown up as an essay going back to at least 1999.

    • Sophie Macon
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      Nope, hence my paranoia then @marc. The problem is that there is no saying that it can’t. And I just didn’t wanna get screwed over that time just because I don’t think it will be out?

    • Marc
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      @sophie (or anyone),

      Should I give a frog’s fat ass about anything is GIPS that talks about what was necessary for compliance in 2001 or 2005 or really any time that isn’t now.

      My theory is, if they are referring to a time when Tony Blair was Prime Minister, my eyes glaze over and I stop paying attention?

      PS. This is where that expression comes from.

      http://www.hark.com/clips/fjcbmbsdcj-i-dont-give-a-frogs-ass

    • Sophie Macon
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      If I had to choose, I’d skip over that @Marc. So yea, you shouldn’t give a rat’s/frog’s ass for that.

    • Zee Tan
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      You think so? I remember seeing questions that did ask about pre-2005, e.g. firm claims to be GIPS compliant, they’ve got reporting like so going back for 10 years, which would encroach into pre 2005 times…

    • Sophie Macon
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      LOL, not an easy decision @zee!

    • Marc
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      Any Level 3 candidates studying GIPS may be interested in the GIPS handbook available on the CFA website. It’s much better than the curriculum and certainly better than Schwesser.

      http://www.cfapubs.org/doi/pdf/10.2469/ccb.v2012.n4.full


      @sophie
      , do you remember GIPS being tested in a quantitative manner? Is it an extension of the SS17 readings? Or, it is better to think of it as an extension of the Ethics readings?

    • Sarah
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      sorry for the digression but I haven’t even finished level II yet and I have so much material for level III.
      Thanks guys B-)

    • Sophie Macon
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      @marc, I don’t recall a quantitative GIPS question during my time trying practice questions etc. Usually it’s slotted into various parts of a question. I’m afraid both are possible variations (SS17 or Ethics)

    • Marc
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      @sophie

      Thanks for that. I fear that I’m following in your footsteps and getting unduly rattled by this topic.

      How do you suggest that I think about Requirements vs. Recommendations? With Ethics, my default assumption is that the correct answer to a CFAI question will never be anything to the effect of “Actually, it was okay that he did this because we only recommend that he doesn’t do it, we don’t actually require him not to do it.”

      Thoughts?

    • Marc
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      @sophie

      Actually, now I’m thinking that it might be dangerous to pay any attention to the recommendations. I don’t want to end up on exam day being confused about whether a firm MUST or SHOULD do x.

      Thoughts?

    • Zee Tan
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      @sophie

      Thanks for that. I fear that I’m following in your footsteps and getting unduly rattled by this topic.

      How do you suggest that I think about Requirements vs. Recommendations? With Ethics, my default assumption is that the correct answer to a CFAI question will never be anything to the effect of “Actually, it was okay that he did this because we only recommend that he doesn’t do it, we don’t actually require him not to do it.”

      Thoughts?

      There’s normally a very clear answer, as long as you think logically through it. The wording will be definitive, don’t worry.

    • Sophie Macon
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      I’m afraid I have no definitive rules on this @Marc. For 2 reasons: I’m not amazing in GIPS myself, nor was I tested in my year, and it’s kinda like Ethics where you use a bit of what you’ve learned + common sense. The only way I suppose is to try the practice questions and see what tricks (if any) they come up with and learn from there.

    • Marc
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      @sophie

      I have drawn a line in the sand on the issue of disclosure. There are 35 fricken’ requirements. Am I going to learn the recommendations? No. I have made my peace with that. If they ask a question about a disclosure recommendation as opposed to a requirement, I will start personally a riot.

    • Sophie Macon
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      @sophie

      I have drawn a line in the sand on the issue of disclosure. There are 35 fricken’ requirements. Am I going to learn the recommendations? No. I have made my peace with that. If they ask a question about a disclosure recommendation as opposed to a requirement, I will start personally a riot.

      Good man @Marc!

    • AjFinance
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      @sophie

      I have drawn a line in the sand on the issue of disclosure. There are 35 fricken’ requirements. Am I going to learn the recommendations? No. I have made my peace with that. If they ask a question about a disclosure recommendation as opposed to a requirement, I will start personally a riot.


      @Marc
      Theres a fine line between Requirements and recommendations. However, like you mentioned it makes GIPS all the more confusing. I’m concentrating more on GIPS requirements myself. My point is that if they would test you on what “might be” done, then they most probably would test what “must be” done to adhere to GIPS standards.

    • artyeasel
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      That’s a good point @marc – recommendation questions may be solvable by simply memorizing requirements and ignoring recommendations, because most of the questions would probably use the recommendations as distractors, so if you don’t remember them at all it actually helps you. Genius!

      But what if the question says something like “What is the recommended GIPS e.g. time period for record keeping?”

    • Marc
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      @artyeasel

      Funny you should mention that, because I was thinking about that exact possibility tonight. First, GIPS hasn’t been tested in the am session since Bill Clinton was in office. Second, if they ask an open-ended question like that, I’m going to personally start a riot. Any chance you’re writing in Toronto? Could be fun to watch. And I could always use backup.

    • Marc
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      @AJFinance

      I agree. They only get yo ask us a limited amount of questions. Why would they waste one on a GIPS recommendation? At least, that’s the bet I’m making.

    • Zee Tan
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      @artyeasel

      Funny you should mention that, because I was thinking about that exact possibility tonight. First, GIPS hasn’t been tested in the am session since Bill Clinton was in office. Second, if they ask an open-ended question like that, I’m going to personally start a riot. Any chance you’re writing in Toronto? Could be fun to watch. And I could always use backup.

      Be sure to post pics and video here @marc!

    • lakshya25
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      Should I read GIPS from CFAI text or Schweser ?

    • Zee Tan
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      @laksya25 I did Schweser. No problems there as far as I could tell…

    • sankrutimehta
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      I did the requirements from Schweser..to be honest at first it was tad too boring that i literally dozed off everytime i had GIPS in hand…but the 2nd read gave some clarity and then i watched the video with some practice questns…it helped!!
      I do understand there is less time to do all of it now..but just a thought…the difference between the 50% who pass and the 10th band is just that those who pass put in 101%..I would risk that 1% to GIPS…solving questions similar to Level 1 helps a lot..I do have 2 question sheets I can share if anyone needs ~X(

    • Sophie Macon
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      That’s a good point @sankrutimehta. Level 3 is competitive and the score difference between bands is very narrow… But the key question is which are to prioritise?

    • sankrutimehta
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      @sophie I think reading the matter on carve outs..real estate and the compliance statement is highly testable..at least it was my observation when solving :-SS

    • Sophie Macon
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      Indeed @sankrutimehta – in fact @Ajfinance asked about GIPS and carve outs a while ago, if you haven’t seen it already.

    • padniaki
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      I still haven’t figured out how I’m going to tackle GIPS, but so far I think the priority is going to be in this order:

      Current requirements
      Past requirements
      Current recommendations
      Past recommendations.

      Once I nail current requirements I’ll go on to the next, and so on. If all I do is current requirements, then so be it. I really am going to try to find some way to make this memorable though. Will post if I come up with anything.

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