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Basic Question 4 of 9
Which one of the following statements is false with respect to the payment of brokerage commissions (soft dollars)?
B. Brokerage commissions paid should be commensurate with the value of the brokerage and research services received.
C. Brokerage commissions may be directed to pay for the investment manager's operating expenses.
A. Brokerage commissions may be directed to pay for securities research used in managing the client's portfolio.
B. Brokerage commissions paid should be commensurate with the value of the brokerage and research services received.
C. Brokerage commissions may be directed to pay for the investment manager's operating expenses.
User Contributed Comments 3
| User | Comment |
|---|---|
| Chitu | Brokerage commission (soft dollar) must be utilised for the client by way of paying for the securities research not for the remittance of investment manager's operating expenses |
| apiccion | Key word here is soft dollar. |
| Hermalia | Another key word is false. I know I have to work on reading each question carefully. |
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Learning Outcome Statements
demonstrate the application of the Code of Ethics and Standards of Professional Conduct to situations involving issues of professional integrity
recommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct
identify conduct that conforms to the Code and Standards and conduct that violates the Code and Standards
CFA® 2025 Level I Curriculum, Volume 6, Module 3.