Soft Dollars

At Griswold, we recognize and value how soft dollar programs allow clients to best use commission dollars. The following information explains the program in further detail.


    Background

  • In 1975, the practice of soft dollar arrangements was codified by the enactment of Securities Exchange Act of 1934, Section 28 (e). Congress created this safe harbor clause under Section 28(e) to protect advisers from claims that they had breached their fiduciary duties by causing investors to pay more than the lowest available commission rates in exchange for research and execution. This allowed money managers to pay higher commission fees to brokerage firms for research products and other services with the caveat that the investor would ultimately benefit from such services.

    • Purpose

  • Many investment managers understand that they are able to better optimize commission dollars through the use of soft dollar arrangments. At the same time, brokerage firms make every effort to offer their customer best execution and information as well as added value and service. The use of soft dollars allows firms to expand their services offered and develop additional partnerships throughout the industry. Therefore, many brokerage firms today incorporate soft dollar programs as a part of their business services.

    • Contact Us

  • Do not hesitate to contact us should you have any questions about the use of soft dollars. Please call Sean Trager at 212-509-2100, or email us at softdollars@griswoldco.com.

    • Additional Information

  • The SEC has set rules and guidelines about the use of soft dollars. Additional resources can be found through the SEC and the following organizations.

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