 |
Move by S.E.C. on 'Soft' DollarsPosted by Randy on: 2005-09-23 14:37:15 in category:
Mutual funds [ Print | Permalink / 0 Comment(s) ] Move by S.E.C. on 'Soft' Dollars By REUTERS Published: September 22, 2005 WASHINGTON, Sept. 21 (Reuters) - The Securities and Exchange Commission voted Wednesday to seek public comment on limiting, but not eliminating, so-called soft-dollar dealings involving mutual funds and brokerage firms. In these arrangements, fund managers get free research and other services from brokers in exchange for sending buy and sell orders for securities to the brokers. While common in the $8 trillion fund industry, such deals are often abused. Paying for research using soft dollars is permissible, but an S.E.C. commissioner, Paul S. Atkins, said at a commission meeting that soft dollars had been used to pay for conferences in Bermuda, rent, telephone calls, even college tuition. The S.E.C. has brought enforcement actions in such instances, but the commission chairman, Christopher Cox, said, "Going after these abuses one at a time is not enough." The S.E.C. wants clear guidelines on how soft dollars can be spent, how their use can be monitored, and what funds and brokers must disclose about soft dollars. The commission will accept comment for 30 days. Homepage Please support are sponsors. To design you custom retirement plan. http://www.retirement-plan.us For planing a IRA rollovers. http://www.ira-rollover.us Professional asset allocation and the wonders it can do. http://www.asset-allocation.us Professional money management: National ranked performance. http://www.roth-ira.us Managers selected to fit your needs. http://www.money-managers.us |
|
Post new CommentThis site does not allow anonymous comments. Registered members can login to participate. Registration is free and takes only a few seconds |
|