Soft-dollar Q receive, following, standards, investment, only

dandman

1- If an investment firm do not choose to conform with Soft-dollar standards, however they still have arrangements with brokers (They still receive softdollar). Do they have to comply with all requirements: 'research' use only and documentation;

2- Can you clarify the following: "Allocate research cost based on expected usage for mixed-use research"


Thank you!

neil1234

Don't know question 1, but don't think it'll show up on the exam (99% sure they will say, so and so works for a firm who wants to comply with Soft Dollar Standards).

Question 2 - You can only use soft-dollars to pay for the portion of an asset that assists in the investment decision-making process.

So if you have a computer that you use half the time for browsing and half the time for doing stock analysis for your portfolios, then you can only pay for 50% of it with soft dollars.

President1988

Many thanks billy!