Soft-Dollar Practices Need Reform?
Traders Magazine, March 2003
Soft-dollar rules, enacted by the SEC in 1975 and modified 11 years later, have not kept up with current trading practices, a prominent trading executive has told Congress. Harold Bradley, senior vice president of American Century Investment Management, said that Congress needs to understand how the 1975 section 28(e) amendment encourages investment managers to use commissions paid by investors as a source of unreported income, which can then be used to pay some of the managers' expenses.
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