Claims of Compliance with AIMR-PPS | CFA Level 1 Exam Prep

Claims of Compliance with AIMR-PPS

Prev Question Next Question

Question

Which of the following is/are true about claims of compliance with the AIMR-PPS?

I. If a firm is only in partial compliance with PPS, it must use a disclaimer specifying the exact areas of non-compliance.

II. If the calculation methodology used by a firm follow standard industry practice, it is allowed to claim that the methodology is in compliance with the AIMR-PPS.

III. If a member misuses the claim of compliance with the PPS, AIMR can publicly censure him, suspend his membership and revoke his CFA charter.

Answers

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D.

C

A firm cannot claim partial compliance with the PPS. It is either fully compliant or non-compliant. Further, statements referring to the calculation methodologies being in accordance with the PPS are explicitly prohibited; the PPS are mainly presentation standards, not measurement standards. Violations are punishable by public censure, membership suspension and revocation of CFA charter.

Prev Question Next Question