The use of customer commissions by investment advisers or money managers to pay for research and other services that benefit the investment adviser or money manager. Section 28(e) of the Exchange Act sets out a safe harbor that allows an investment adviser to use client funds to purchase "brokerage and research services" for its discretionary accounts under certain circumstances without breaching its fiduciary duties to clients.

For further information, see Practice Note, Soft Dollar Arrangements Under Section 28(e) of the Exchange Act.