"morality" exercise:The GIPS Standards

A is correct. GIPS compliance is a firm-wide process that cannot be achieved or claimed on just a single product or on selected composites. To be eligible to claim compliance, an asset management firm must fully comply with all requirements of the GIPS standards and claim compliance through the use of the GIPS Compliance Statement. 

 B is incorrect. To be eligible to claim compliance, an asset management firm must fully comply with all requirements of the GIPS standards on a firm-wide basis, not just for a select group of composites. So whether performance reporting is meeting a certain standard is irrelevant.

C is incorrect. To be eligible to claim compliance, an asset management firm must fully comply with all requirements of the GIPS standards. Return calculations are just a small component of all the GIPS requirements.

A is correct. According to requirements for GIPS compliance, GIPS standards must be applied on a firm-wide basis. They cannot be separately applied to composites. 

B is incorrect because firms are responsible for their own claims of compliance. While a third party independent verification is recommended it is not required for compliance to be claimed by a firm. 

C is incorrect because a firm must be defined as an investment firm, subsidiary, or division held out to clients or prospective clients as a distinct business entity. There is no requirement for the firm to be a separate legal entity