NEW YORK - Soft dollars and directed brokerage are appalling and must be eliminated. Thats the tune weve been hearing almost uninterrupted for the last several months as regulators and lawmakers have unleashed the hounds on the fund industry. But not all are on board with the efforts to kill the practices.
Many firms have some serious concerns with the possibility of the elimination of soft dollars for third-party research. Those that oppose the ban say the move would result in less innovative and independent research, which in turn would hurt investors.