SEC Issues Proposed Guidance to Fund Boards Relating to Best Execution and Soft Dollars

September 04, 2008
The Securities and Exchange Commission recently issued proposed guidance focusing on the role of mutual fund boards in evaluating whether funds’ investment advisers are fulfilling their obligations to seek best execution in trading the funds’ portfolio securities. It addresses how boards should assess the advisers’ use of fund brokerage commissions to acquire products and services other than trade execution, such as investment research. This update examines the impact on the work of fund boards and advisers.