Ethics commission, investment, unexpected, following, regarding

DarienHacker

Hi Brave Ones, hope everybody is well...unfortunately I am having "unexpected" problems on my start-up engines...

I need your help regarding question # 28 (CFAI B1)

Why should some accounts prohibit soft dollars arrangements? Aren't they valuable within the investment decision-making process?



Am I also missing anything big on the following questions?

1) When you prohibit soft dollars arrangements you only pay the commission?
2) But when you allow for soft dollars arrangements you pay the commission plus an extra fee for the arrangement?


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thank you all and let's keep fighting


"...WHAT A MARATHON.."

tigas

NakedPuts2011

If I am an institutional investor with in-house analysts that know their job well, I will reduce expenses by foregoing soft dollar arrangements for third party analyst reports. I hope it makes sense.

Without soft dollar arrangement I only pay commission to my brokers without paying additional fees for their reports.