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Article: Industry Groups Battle Over Soft Dollars.(Mutual Fund Directors Forum)(Alliance for Independent Research)(Brief Article)
- Article from:
- Traders
- Article date:
- September 1, 2004
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Another group is making its case to the regulators that professionals using soft-dollar arrangement profit at the expense of investors.
"Soft-dollar arrangements benefit a fund's adviser because it is spared the expense of purchasing or obtaining its own research provided by the broker dealer," according to a paper recently sent to the SEC by the Mutual Fund Directors Forum. The trade group contends that soft dollars inevitably lead to potential conflicts of interest.
Informal Arrangements
"Accordingly, the Forum recommends a fund board, under the leadership of its directors, not permit the fund's adviser to participate in soft-dollar ...