As a result, commission sharing arrangements (CSAs) and client commission arrangements (CCAs) - both easy ways to implement soft dollars
- have become popular among investment managers in the last two years and will continue to be aggressively adopted.
Commission payments generating soft dollars
currently are permissible within limits under section 28(e) of the Securities and Exchange Act of 1934.
Control procedures are in place to periodically review policies for best execution, soft dollars
and proxy voting.
Our June 2003 report, Mutual Funds: Greater Transparency Needed in Disclosures to Investors, GAO-03- 763, reviewed (1) how mutual funds disclose their fees and related trading costs and options for improving these disclosures, (2) changes in how mutual funds pay for the sale of fund shares and how the changes in these practices are affecting investors, and (3) the benefits of and the concerns over mutual funds' use of soft dollars
Is the client monitoring the soft dollars
, best execution, and proxy voting (if it is delegated) of each one of its money managers?
In the eyes of those making the budget cuts, customer care may seem like soft dollars
when, in fact, it dramatically impacts the bottom line.
represented 46 percent of their fund-raising total.
Adviser trading practices, including the use of soft dollars
and the obligation to seek best execution;
Through directed brokerage, soft dollars
now are employed to purchase a range of services and/or equipment, all with the blessing of the SEC under Rule 28(e).
Rather than dissipating investor's wealth, soft dollars
subsidize portfolio research by brokers, guarantee execution quality, and promote specialization.
Broker-dealers that collect soft dollars
and make payments for their hedge fund clients must possess and implement adequate procedures that govern their soft dollar
practices," said Susan Merrill, FINRA Executive Vice President and Chief of Enforcement.
And we also raise a lot more hard dollars than soft dollars