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Soft Dollars |
Mutual Funds
SOFT DOLLARS
Overview
Proposals to address the issues of soft dollars/commission research dollars.
Position
SIA supports disclosure of soft-dollar practices so that investors better understand the extent to which research services are subsidized out of commissions, as well as the benefits that those services may yield to fund performance paid by a soft-dollar arrangement. SIA believes that third-party research is highly valuable to investors as recognized by regulators in the global research settlement and should not be excluded from permissible soft-dollar research. Similarly, we oppose the exclusion of technology used in trading and investment decision-making from soft-dollar arrangements.
Status
As of July 2006 - no current legislation pending. SEC guidance on disclosure is expected later this year.
Updates
SIA Commends SEC Interpretive Guidance on “Soft Dollars” - July 20, 2006
Interpretive Release On Section 28(E) Of The Exchange Act (Soft Dollars Safe Harbor) - pdf, July 18,2006
SIA Welcomes NASD Mutual Fund Task Force Findings And Recommendations Regarding Soft Dollar Arrangements - November 17, 2004
Best Practices “Soft Dollar Arrangements” - pdf
Statement of Grady G. Thomas, Jr., President, The Interstate Group, Division of Morgan Keegan & Company, Inc. Before the Committee on Banking, Housing, and Urban Affairs of the United States Senate -- pdf, March 31, 2004
Statement of Joseph M Velli, Senior Executive Vice President, The Bank of New York Before the United States Senate Committee on Banking, Housing and Urban Affairs -- March 31, 2004
