Professional Documents
Culture Documents
LOS 3.a: Define “soft dollar” arrangements and state the general principles of the Soft Dollar
Standards.
Soft Dollar - Research / benefits reimbursed to the client, or the client’s manager, by the
broker in exchange for directing trades to the broker.
Mixed use research – research that can be used for both the investment management
process and general management
Brokerage is always property of client - we're using clients money after all.
I. General – Required
• Soft dollar practices must benefit client, whose interests always come first
• Re: mutual funds, investment manager’s client is the fund. Fund’s board should
set policies on broker selection
LOS 3.c: Determine whether a product or service qualifies as “permissible research” that can be
purchased with client brokerage.