Codes, Standards & Guidelines
Soft dollar (or soft commission) practices involve the use of client brokerage commissions by investment managers to purchase research to help managers make investment decisions.
Because this practice has become complex, we've developed our Soft Dollar Standards, which provide guidance beyond our Code of Ethics and Standards of Professional Conduct.
The Soft Dollar Standards put the focus on the client and provide investment professionals with guidance on how to use client brokerage ethically, based upon the following principles:
- Soft dollars belong to the client
- Investment managers may only purchase research with soft dollars if the primary use is investment decision making process, not firm management
- Investment managers must disclose all relevant benefits they receive through client brokerage
What Do the Soft Dollar Standards Cover?
- Definition of soft dollars
- Appropriate products and services to purchase with client brokerage
- Establishment of standards for soft dollars use
- Model disclosure guidelines
- The manager's role and responsibility to clients
Questions? Contact us.