Level I Verification for CFA® Exam

C

This is a requirement under Level I verification procedures.

Level I verification requires independent attestation that the requirements of the AIMR-PPS (Association for Investment Management and Research Performance Presentation Standards) have been met on a(n) ________ basis.

The correct answer is C. firmwide.

The AIMR-PPS is a set of performance presentation standards developed by the Association for Investment Management and Research (AIMR, now known as CFA Institute) to provide guidelines for investment professionals to accurately and fairly present investment performance. The verification of compliance with these standards is an important aspect of maintaining transparency and credibility in the investment industry.

When it comes to the verification of compliance, the term "firmwide" means that the attestation process should cover the entire organization or firm. It implies that all aspects of the firm's operations related to investment performance, including data collection, calculation methodologies, and reporting, should be evaluated to ensure compliance with the AIMR-PPS.

A. "International" is not the correct answer because it implies that the verification is based on international standards or requirements. While the AIMR-PPS may have global applicability, the question specifically asks about the basis of verification, which is not necessarily international.

B. "Nationwide" is also not the correct answer because it suggests that the verification is conducted on a national scale. However, the AIMR-PPS is not limited to any particular country or jurisdiction, and the attestation should encompass the entire firm's operations, which may have a broader scope than just one nation.

D. "Attainable" is not the correct answer because it does not fit the context of the question. The term "attainable" implies something achievable or reachable, which does not align with the concept of verification in this context.

In summary, the attestation of compliance with the AIMR-PPS on a firmwide basis ensures that the investment firm has followed the standards for performance presentation across all relevant areas of its operations, promoting transparency and consistency in reporting investment performance.