ethics


pankaj
Finance Junkie
Posts: 61
Joined: Fri Aug 03, 2012 11:24 am

Re: ethics

Postby pankaj » Sat Nov 17, 2012 10:32 am

It is means of paying brokerage firms for their services through commission revenue, as opposed to through normal direct payments (hard dollar fees).

A fund manager may offer to pay for research report from a brokerage firm by executing trades at the brokerage.
Thais instead of paying cash(“hard” dollars); the fund manager will pay in-kind with brokerage business (“soft” dollars).

Hope this helps!

pradeeppdy
Finance Junkie
Posts: 258
Joined: Thu Sep 20, 2012 3:42 pm

Re: ethics

Postby pradeeppdy » Sat Nov 17, 2012 11:21 am

we need to disclose the soft dollar arrangement to our clients employers and to our prospective clients?

pankaj
Finance Junkie
Posts: 61
Joined: Fri Aug 03, 2012 11:24 am

Re: ethics

Postby pankaj » Sat Nov 17, 2012 12:59 pm

yes, soft dollar arrangements needs to be disclosed to clients and prospective clients.


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