- In Schweser, under I. General (required), it says: Soft dollar practices must benefit the client and must place the clients’ interests above the investment manager’s interest. - In Schweser, under II. Relationships with Clients (recommended), it says: It is permissible to use client brokerage from agency trades to obtain research which may not directly benefit the client. Don’t these contradict?
Would this be where, for example, 20% of soft dollars are used and the firm pays 80%?
for agency trades, it is okay if the research does not benefit the client directly, but in the long run it should.