Correct on soft dollars and referral fees?

CFA Level II
#1

Just did a little ethics review and put this in my notes. Is this accurate? Soft Dollars: if you use client 1’s soft dollars for other clients, must disclose to client 1 and get prior permission. Referral fees: disclose agreements to clients/prospective clients; NO PERMISSION needed

#2

the show NY Wrote: ------------------------------------------------------- > Just did a little ethics review and put this in my > notes. Is this accurate? > > > Soft Dollars: if you use client 1’s soft dollars > for other clients, must disclose to client 1 and > get prior permission. > Referral fees: disclose agreements to > clients/prospective clients; NO PERMISSION needed Soft dollars have to benefit the client(base). Additionally, it doesn’t have to benefit that particular client directly, unless it is a special type of account (i.e. Pension fund under ERISA). If you received research from using Client A’s brokerage and use it to assist Client B’s account, I do not believe it has to be disclosed to Client A.

#3

bpdulog Wrote: ------------------------------------------------------- > the show NY Wrote: > -------------------------------------------------- > ----- > > Just did a little ethics review and put this in > my > > notes. Is this accurate? > > > > > > Soft Dollars: if you use client 1’s soft > dollars > > for other clients, must disclose to client 1 > and > > get prior permission. > > Referral fees: disclose agreements to > > clients/prospective clients; NO PERMISSION > needed > > Soft dollars have to benefit the client(base). > Additionally, it doesn’t have to benefit that > particular client directly, unless it is a special > type of account (i.e. Pension fund under ERISA). > > If you received research from using Client A’s > brokerage and use it to assist Client B’s account, > I do not believe it has to be disclosed to Client > A. I think you can only do this if the research initially benefits client A, I doubt you can use client A soft dollars for research for client B.

#4

i took my 2 facts above based on the questions and explanations for schweser exam 2pm #'s 62 and 63. they seem to be corroborated there.