Soft dollar意思

"Soft dollar" is a term used in the financial industry, particularly in the context of investment management and brokerage services. It refers to the practice of brokers or financial advisors receiving goods or services from a broker-dealer or other service provider, rather than receiving direct cash payments for their services.

Soft dollar arrangements typically involve the use of commission dollars to pay for research, data, or other services that can be used to make investment decisions on behalf of clients. For example, a portfolio manager might use soft dollars to pay for a subscription to a financial news service, a data analysis tool, or other research materials that help them make investment recommendations.

The use of soft dollars can be a way for investment managers to provide additional value to their clients by accessing high-quality research and data without directly increasing their costs. However, soft dollar arrangements can also be controversial, as they can create conflicts of interest if the investment manager is incentivized to select brokers or services based on the soft dollar benefits they offer, rather than on the quality of their services.

It's important for investors to be aware of soft dollar arrangements and to understand how they may impact the investment decisions made on their behalf. In the United States, soft dollar practices are regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), which have established rules and guidelines to help ensure that soft dollar arrangements are conducted in a manner that is fair and transparent to clients.