QUESTIONS 55 TO 60 RELATE TO GLOBAL INVESTMENT PERFORMANCE STANDARDS Q...

55. Is WCM most likely correct in claiming compliance based on the verification report?

A. Yes

B. No, because of the level at which verification is claimed

C. No, because of the timeframe for which verification is claimed

Answer = B

“Global Investment Performance Standards,” Philip Lawton

2013 Modular Level III, Vol. 6, Reading 43, Section 6

Study Session 18–43–t

Discuss the purpose, scope, and process of verification.

B is correct because a single verification report is required to be issued with respect to the

whole firm. Verification cannot be carried out only on a composite and, accordingly, does not

provide assurance about the investment performance of any specific composite. The Standards

stress that firms must not state or imply that a particular composite has been “verified.”