CIPS L5M2 Exam - Topic 1 Question 6 Discussion

Actual exam question for CIPS's L5M2 exam

Question #: 6
Topic #: 1

Company X is a large company which is traded on the UK stock exchange. According to the Companies (Miscellaneous Reporting) Regulations 2018- is it obligatory for Company X to follow a Corporate Governance Code?

Ayes- all companies in the UK must follow this

Byes- all companies trading on the stock exchange must do this

Cno- corporate governance codes are not mandatory

Dno- but if it doesn't follow a Corporate Governance Code it must explain the reasons why not

Show Suggested Answer

Suggested Answer: D

The correct answer is 4 - the policy is 'comply or explain' - basically say which code you follow, or explain (publicly) why you're not following one. See p. 145 for more information on this

by Rhea at Nov 19, 2022, 08:58 PM

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Alex

7 months ago

Actually, C is misleading; they do have to explain deviations.

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Grover

7 months ago

B seems right, all listed companies should follow it.

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Mammie

7 months ago

Wait, is it really not mandatory? That seems odd.

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Virgie

7 months ago

Totally agree with D, that's how it works!

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Jovita

7 months ago

I think it's D, they need to explain if they don't follow it.

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Alfreda

8 months ago

I recall that the Companies (Miscellaneous Reporting) Regulations 2018 introduced some flexibility, so I think option C could be correct too.

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Kayleigh

8 months ago

I’m a bit confused because I thought all companies on the stock exchange had to comply, but maybe it's just a recommendation?

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France

8 months ago

I practiced a similar question where it mentioned that companies need to explain if they don't follow the code, so I might lean towards option D.

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Lawrence

8 months ago

I think I remember that not all companies are required to follow a Corporate Governance Code, but I'm not sure if it applies to all listed companies.

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Elizabeth

8 months ago

Ah, I remember learning about this in class. I'm pretty sure the difference has to do with how they match directories and subdirectories.

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Glenn

8 months ago

This looks like a pretty straightforward question on generalized extreme value distributions. I'm pretty confident I can handle this one.

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Ona

8 months ago

I'm a bit confused by the options. The question mentions that the traffic is going through the overlay, but option B talks about UI being configured to force traffic into the underlay. I'm not sure if that's the right answer.

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