Whole Section

  • Practice Note 4.38 Soft Dollar Receipts or Payments

    • 1. Introduction

      • 1.1

        Rule 4.38.1 says that a Trading Member and its Trading Representatives may receive goods and services from a broker for directing business to the broker under certain conditions.

        Added on 3 June 20193 June 2019.

      • 1.2

        Rule 4.38.2 says that a Trading Member may pay for goods and services to a customer for directing business to the Trading Member under certain conditions.

        Added on 3 June 20193 June 2019.

      • 1.3

        This Practice Note provides guidance on the types of goods and services that do not qualify for soft dollar receipts or payments.

        Added on 3 June 20193 June 2019.

    • 2. Good and Services that do not qualify as soft dollar receipts or payments

      • 2.1

        The following goods and services do not qualify as acceptable soft dollar receipts or payments for the purpose of Rule 4.38:

        (a) Travel, accommodation and entertainment expenses.
        (b) General administrative goods and services including office equipment and premises expenses.
        (c) Membership fees.
        (d) Employees' salaries.
        (e) Direct money payment. This does not include payment of referral fees under a referral agreement.

        Added on 3 June 20193 June 2019.

      • 2.2

        A Trading Member or its Trading Representative should not receive goods and services from a broker, if the act of it compromises the interest of the customer or may result in the breach of the Rules or other regulatory requirements by the Trading Member or its Trading Representatives.

        Added on 3 June 20193 June 2019.