If a firm opts for verification of its claim of compliance with the GIPS

If a firm opts for verification of its claim of

This preview shows page 6 - 9 out of 38 pages.

13. If a firm opts for verification of its claim of compliance with the GIPS standards , the firm: A.must hire investment management firm only. B.is required to use an independent third party only. C.can either use an independent third party or can voluntarily perform its own verification.
Background image
Level I of CFA®Program Mock Exam 1 – Questions (PM)FinQuiz.com © 2020 - All rights reserved. 714. If members and candidates have custody of client’s assets they must manage them in accordance with: 15. In preparing an investment policy statement and suitability analysis, if a client refuses to provide complete information regarding his financial position, the most suitable action for a member or candidate is to: 16. Kristin Harper, CFA manages individual client portfolios at Lucas Trust Advisory. One of her clients, Nicholas Hanson, is owner of five hotel brands with approximately 800 hotels in Europe. For her vacations, Hanson offered Harper a 25% discount and free meals if she stayed in his hotels. Harper informed her employer about the discount offered by her client over the phone. According to CFA Institute Standards of Practice Handbook,if Harper gets that deal she will:
Background image
Level I of CFA®Program Mock Exam 1 – Questions (PM)FinQuiz.com © 2020 - All rights reserved. 817. Rick Mueller is a junior analyst at Morris & Clifton Advisors (M&CA), a large brokerage and advisory firm with more than 500 analysts. Majority of the analysts at M&CA are either CFA charterholders or are enrolled in different levels of CFA exam program. When the firm asked Mueller, why he wants to become a charterholder, he wrote the following lines, “I have passed Level 2 of the CFA exam. In the field of investment management, the CFA designation is globally recognized, it is a rigorous and comprehensive study program, and CFA charterholders achieve better performance results.” Mueller is most likely in violation of the Standards of Professional Conduct with reference to the statement: A.“I have passed Level 2 of the CFA exam.” B.“It is a rigorous and comprehensive study program.” C.“CFA charterholders achieve better performance results.” 18. In complying with the GIPS standards, if existing laws and regulations already impose requirements related to the calculation and presentation of investment performance:
Background image
Image of page 9

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture