Response to "Review Soft Dollar Deals With Fund Management Firms" (Today, 15 February 2005)
I refer to "Review soft dollar deals with fund management firms" (Today, 15 February 2005).
2 Fund managers may receive "soft dollars" only if they ensure that transactions are executed on the best available terms and if the "soft dollars" can assist them in managing the fund. Fund managers are not allowed to enter into unnecessary trades to achieve a sufficient volume of transactions to qualify for "soft dollars".
3 To help investors make informed investment decisions, MAS requires fund managers to disclose "soft dollar" arrangements in fund prospectuses and to describe soft dollars received in the semi-annual and annual reports. In the course of MAS' inspections, we will also conduct checks to ensure that fund managers comply with the rules.
4 These practices are in line with those in other leading financial centres. We will continue to monitor international developments and introduce enhancements where appropriate.