CCM

The 28(e) Safe Harbor

CCM is the leading provider of independent fixed-income research under the Section 28(e) safe harbor. Our clients have access to a wide variety of research services provided by CCM.

Access to unbiased third-party research is critical to making prudent investment decisions. In fact, studies show a direct correlation between having access to research and an increase in returns.

Regulatory Overview

A 1975 Amendment of The Securities Exchange Act of 1934 (clarified in the Interpretive Releases of 1976, 1986, 2001, and 2006), Section 28(e) was enacted by Congress to provide a safe harbor that protects money managers from a breach of fiduciary duty solely on the basis that they paid more then the lowest available commission rate. Money managers act within the safe harbor if they determine in good faith that the amount of commission is reasonable in relation to the value of the brokerage and research services received.

  • JUNE 4, 1975
    SEC provides Money Managers with a safe harbor to use clients funds to obtain research services without breaching their fiduciary duties. Section 28(e)
  • SEC clarifies that both riskless principal and agency transactions are eligible under the Section 28(e) SEC 2001 Release
  • NOVEMBER 11, 2004
    Task Force unanimously supports soft dollar practices Mutual Fund Task Force
  • MARCH 31, 2011
    SEC requires all RIA’s to disclose and discuss ALL soft dollar benefits. New form ADV
  • SEPTEMBER 22, 1998
    SEC states that research is the “foundation of the money management industry” SEC Inspection Report on Soft Dollar Practices
  • APRIL 28, 2003
    Research moves from Wall Street to independent Third-Party The Global Settlement
  • JULY 24, 2006
    SEC determines the Safe Harbor encompasses proprietary and third-party research on equal terms. SEC 2006 Release
  • JULY 19, 2010
    Empirically proves research leads to returns; discussion of proper way to acquire research. White Paper