Explanation:
When there is a conflict between GIPS (Global Investment Performance Standards) and local regulations, firms should:
This approach aligns with the fundamental principle that legal requirements supersede voluntary professional standards. GIPS are voluntary standards designed to promote fair representation and full disclosure of investment performance, but they do not override local legal requirements.
Key Points:
Therefore, option B is correct: comply with local regulations and disclose conflicts.
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Where local performance presentation regulations conflict with GIPS standards, GIPS-compliant firms should most likely comply with:
A
the GIPS standards.
B
local regulations and disclose conflicts.
C
the higher standard between local regulations and the GIPS standards.