Ethics - Pg50 (para 4)

regarding soft dollars, 1st it says, wherever a manager uses clients’ brokerage to purchase goods/services that DO NOT benefit client, disclosure required…and address potential cofilict then, it states, a manager pays higher c’ssion then would normally required to purchase the good/services without corresponding benefit to the client would be a violation. found this pretty contradictory, i understand the 2nd one, but the first one says if goods/Services DO NOT benefit client, just disclose, doesn’t sound right to me… any compliance guru to clarify? thanks

it is the difference between agency trades and principal trades. Check Soft dollars doc