Performance Presentation Standards

C

All of the answers are true of the PPS standards.

The Performance Presentation Standards (PPS) are guidelines established by the CFA Institute for investment professionals to follow when presenting investment performance information to clients. Let's analyze each statement to determine which one(s) are true:

I. The statement says that the PPS are voluntary standards and are not required by the Association for Investment Management and Research (AIMR) to be adopted by a member or a firm. This statement is true. The PPS are not mandatory requirements; they are voluntary standards. AIMR, which is now known as the CFA Institute, does not require its members or firms to adopt the PPS.

II. The statement claims that members do not need to be in compliance with the PPS to be in compliance with Standard V (B) - Performance Presentation. This statement is also true. Standard V (B) of the CFA Institute's Code of Ethics and Standards of Professional Conduct provides guidelines on performance presentation. While the PPS provide additional guidance for presenting performance information, compliance with Standard V (B) does not necessitate compliance with the PPS.

III. The statement states that a member can claim compliance with the PPS only if they have complied with all the mandatory requirements of the PPS. This statement is false. The PPS consist of both mandatory and recommended provisions. Compliance with the mandatory provisions is required to claim compliance with the PPS, but not all the recommended provisions are mandatory. Therefore, a member can claim compliance with the PPS even if they have not complied with all the recommended provisions, only the mandatory ones.

Based on the analysis above, the correct answer is option B: I and III only.