McLean Budden Adopts Proposed New OSC Soft Dollar Guidelines
New National Instrument 23-102 scheduled to come into effect on 30 June 2010
The new National Instrument 23-102 “Use of Client Brokerage Commissions Rule” was recently released in final form and will come into effect on June 30, 2010. McLean Budden has decided to adopt immediately the new National Instrument. After numerous different versions, this rule is only slightly different from the old Ontario Securities Commission Policy 1.9, in that it provides greater clarity regarding what is considered a soft dollar item and what client disclosure is required.
In addition, the new Instrument considers Commission Sharing Arrangements (CSAs) as soft dollars. McLean Budden firmly believes that CSAs provide an essential service in helping attain Best Execution for our clients and therefore we will treat CSAs separately from the more traditional soft dollars. As a result, we will avail ourselves of the ability to use CSAs for up to an average of 10% and soft dollars for up to an average of 10% of clients’ commission dollars for a combined total of 20% on a rolling 3-year basis.
McLean Budden treats client commissions extremely seriously and uses them to maximize our research and trading ability for the benefit of our clients. We will monitor these research and order execution services continuously to validate them and to certify their appropriateness.
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