Hedge Funds

SEC looks at soft-dollar dealings


The U.S. Securities and Exchange Commission is looking at fine-tuning the rules that govern soft-dollar dealings between funds and their brokers.

The SEC this week began seeking market comments from industry participants on what can be done to limit soft dollar activities and prevent abuse. Regulators made it clear they are not seeking to end the practice, and are instead looking to more clearly establish ground rules in terms of what types of expenses might be appropriate for such expenses.