On the heels of the SEC announcing last Wednesday its plans to establish guidelines on how soft dollars may be spent, Boston-based Fidelity Investments has decided to cut down on soft-dollar arrangements, a practice common in the mutual fund industry, in an effort to set an example for other firms, Reuters reports.

Earlier in the month, Fidelity began to pay Lehman Brothers separately for proprietary research. Although the SEC's proposed soft-dollar rules allow for such research to be bundled in with trades, since last year, Fidelity has been advocating for more disclosure of the value of proprietary research and the sums of money mutual funds spend on commissions.

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