Jacaranda Asset Management Case Scenario
官网这个case的一个题
The new risk-based regulations also require companies to gather client information as part of know-your-client and anti-money-laundering processes. Bukenya creates a confidentiality policy restricting access to existing and prospective client information. The information is only available to personnel who are authorized by the existing or prospective client. The one exception is if the client or prospective client is thought to be conducting illegal activities. In this circumstance, the information can be released without authorization if the information is demanded through a court order or other legal requirement.
Question
Does Jacaranda’s performance presentation policy most likely meet required procedures for complying with CFA Institute Standards of Professional Conduct?
A.No, because of the structure of the composite.
B.Yes.
C.No, because it is not in compliance with GIPS standards.
Solution
A is correct. Standard III(D)–Performance Presentation requires firms to provide credible performance information to clients and prospective clients as well as to avoid misstating or misleading clients and prospective clients about the investment performance of firms. A single composite that includes all client portfolios, regardless of investment objectives (which would likely be different for the retail and institutional clients) could be considered to be misleading. The standard does not require firms to be GIPS compliant. Firms not in compliance with the GIPS standards, however, should present the performance of a weighted composite of similar portfolios, rather than using a single representative account or all accounts with different non-similar portfolios.
B is incorrect because by having a single composite including all client portfolios, regardless of investment objectives (that would likely be different for the retail and institutional clients) could be considered to be misleading.
C is incorrect because firms can still meet Standard III(D) requirements without being in compliance with GIPS.
答案如上，感觉没理解，求教老师
