Question #27
Reading: Reading 42.3 Standards of Professional Conduct Guidance for Standards III
PDF File: Reading 42.3 Standards of Professional Conduct Guidance for Standards III.pdf
Page: 11
Status: Unattempted
Correct Answer: A
Question
Which of the following statements about soft dollars is least accurate?
Answer Choices:
A. Soft dollars are assets of the client
B. Directed brokerage are soft dollars to be used for research that benefits the investment firm
C. Soft dollars are third party research arrangements
Explanation
Directed brokerage are soft dollars directed by the client to the investment manager to
pay for goods and services that benefits the client only and not the firm.