The correct answer is: a)
(I) is incorrect. The rule is that if the Standards
are more strict than local laws, yet they are in conflict
with each other, then the managers must adhere to
the local laws. However, they must simultaneously
disclose this conflict in their presentation.
(II) is incorrect. It is possible for a fee paying
discretionary portfolio to be accounted for in more
than one composite.
(III) is true. The reason why non-discretionary portfolios
should not be included in any of the composites, is
because the managers did not have full and direct
control in the investment decisions that were made
for these portfolios.
incorrect. Countries without established performance
presentation standards, may incorporate
Global Investment Presentation Standards into their
system by way of creating a "Translation of Global
Investment Presentation Standards. The "Country
Version of Global Investment Presentation Standards" is
for those countries that already have presentation
standards in place.2005