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Ethical and Professional Standards
Ethical and Professional Standards
Medium
A portfolio manager uses client brokerage commissions (soft dollars) to purchase a Bloomberg terminal subscription used exclusively for client portfolio research and analysis. This use of soft dollars is most likely:
A
Permissible, because the service directly benefits the investment decision-making process for clients
B
A violation, because all brokerage services must be paid with hard dollars
C
Permissible only if the manager obtains written client consent for each transaction
D
A violation, because Bloomberg terminals also provide non-research features
Select an answer to continue
Tags
#soft-dollars
#client-commissions
#research-services
#permissible-use
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CFA Level I — Ethical and Professional Standards Practice Question | AcadiFi | AcadiFi