Mean, Variance, Standard Deviation and CorrelationWhile making an investment decision, it is important to assess the risk/return profile of any invest...
Lessons
- CFA Level 2: Ethic & Professional Standards – Introduction
- The Code of Ethics – Short Version of the Six Components
- The Seven Standards for Professional Conduct
- CFA Soft Dollar Standards - Overview
- CFA Soft Dollar Standards
- Research Objectivity Standards (ROS)
- CFA Level II Ethics – Exam Thinking and Recommendations
- The Prudent Investor Rule
CFA Soft Dollar Standards
In the previous article, we briefly discussed the idea of soft dollars. In this article we discuss the soft dollar standards provided by CFA. Each standard is followed by one required practice, but this may not be the only requirement for a given standard.
- General principles for the investment firm – always act in the benefit of the client and place those interests before his/her own.
- Investment firm relationship with client – the firm must disclose soft dollar arrangements to a client before trading a client’s account under these arrangements.
- Selection of broker – the investment manager must select the broker with best total execution value received by the client.
- Firm determination of qualified research for appropriate soft dollar purchase – the investment manager must be able to document the basis for his/her determination of qualified research purchased with soft dollars.
- Client directed brokerage – a client may direct his or her trading business to a specific broker, but soft dollar services from another client may not be used to benefit the client directing brokerage.
- Disclosure terms for investment firms claiming soft dollar compliance – soft dollar arrangements must be clearly disclosed to all clients and potential clients.
- Record keeping for investment firm – a firm must document its allocation process for the use of client brokerage to obtain mixed use products.
You may find these interesting
Study Material for CFA ExamWe are happy to announce the launch of “Study Material for CFA Exam” from Finance Train.
At Finance...
How to Pass the CFA Exam - Part 1The Certified Financial Analyst (CFA) exam is one of the most popular and at the same time a very di...
Study Session 1 - Ethical and Professional Standar...The readings in this study session present a framework for ethical conduct in the investment profess...
What You Must Study – Ethical and Professional Sta...**Certification:** [CFA Exam Level 1](https://financetrain.com/certification-guides/cfa-level-1/) **...
CFA Calculator: Financial Calculator for CFA ExamIn order to work with quantitative sections of the study material, it is important that you be able ...
CFA Careers: Options for CFA CharterholdersAccording to CFA Institute, the CFA charter provides you with a strong foundation for a variety of c...
CFA Exam: My Experience and Some TipsChartered Financial Analyst is a great award that everybody wants, but it’s very difficult to get. N...
CFA Level 2 Exam – 21 Week Study Plan, Part 1 of 6This study plan is based on notes taken from my 2009 journey through the CFA Level 2 exam. There ma...
CFA Level 2 Exam – 21 Week Study Plan, Part 2 of 6Introductory Remarks – see [part 1](https://financetrain.com/cfa-level-2-exam21-week-study-plan-part...
Finance Train Premium
Accelerate your finance career with cutting-edge data skills.
Join Finance Train Premium for unlimited access to a growing library of ebooks, projects and code examples covering financial modeling, data analysis, data science, machine learning, algorithmic trading strategies, and more applied to real-world finance scenarios.
I WANT TO JOINJOIN 30,000 DATA PROFESSIONALS
Free Guides - Getting Started with R and Python
Enter your name and email address below and we will email you the guides for R programming and Python.