Labor Dept. Retreats on Soft Dollars

Traders Magazine, February 2008

Peter Chapman

Under the revised ruling, fund managers will still have to make certain disclosures about commissions and soft dollars to the pension plans. If they don't, the plans are required to come up with a value for the research. "The plan would have to identify the research provider and place a value on that research," said Lee Pickard, a principal with attorneys Pickard & Djinis who specializes in soft dollars. "I don't know how they are going to do that."

SIFMA's Varley says her organization is working with Labor toward some interpretation of points that are unclear. She expects something out in enough time for the industry to alter its systems. The new rules don't go into effect for a year.

 

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