Harold Bradley, CIO for growth equities at American Century Investments, today testified before a Senate panel that the SEC should narrow the definition of research services and products money managers can obtain under soft-dollar arrangements. He also told the Senate Banking Committee that the SEC should ask brokerage firms to break out the cost of executing trades only, instead of bundling the soft-dollar research into the commissions, and to list all their soft-dollar arrangements. Also, money managers should be required to list all soft-dollar goods and services they receive.
Geoffrey I. Edelstein, a managing director at Westcap Investors and a member of the Investment Counsel Association of America, also urged the SEC to narrow the definition of investment research available under soft-dollar arrangements and expand record keeping by money managers. "The ICAA supports full and appropriate disclosure of soft-dollar practices by all investment advisers," he said.