" refers to the practice of paying full price for stock trade execution and receiving research for free in return.
In announcing the final settlement, Janus says it implemented several new measures, including: enhancing portfolio valuation techniques to discourage market timing; eliminating the use of 'third-party soft dollars
,' or using brokerage commissions to purchase research and services; implementing a 2% redemption fee on shares of certain funds liquidated within 90 days of purchase; and, increasing portfolio holdings disclosure to monthly from semi-annually.
* Control procedures are in place to periodically review policies for best execution, soft dollars
and proxy voting.
SEC is also seeking information on how fund advisers use investor dollars to obtain research under a practice called soft dollars
. Given the increased spotlight that Congress and regulators are placing on the mutual fund industry, GAO believes the time is right to more effectively address the conflicts of interest created by soft-dollar arrangements.
"They're also getting better at policing this." Some have banned the use of "soft dollars
," or kickbacks, in which a fund company pays a brokerage more than required to execute a trade and the brokerage responds by providing research, IPO access or information terminals.
Except there's a loophole--a Grand Canyon-like chasm, in fact--through which unregulated and unlimited soft dollars
are finding their way into the political system.
"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.
Neef provides several actual corporate examples throughout the book of how a carefully planned e-procurement initiative can result in significant financial returns in both hard and soft dollars
CRP is a process where a fund receives a rebate from a portion of the commissions known as soft dollars
. Soft dollars
are portions of a broker's commission that investment managers use to pay for research whether it comes in a proprietary way or arrives by third-party researchers.
* Adviser trading practices, including the use of soft dollars
and the obligation to seek best execution;
Management sees that training isn't any longer about soft dollars
, but hard dollars.
. This well-oiled system allows money managers and mutual funds to pay for research, software, and other business that benefits the client.