70% might leave business: Soft-dollar ban would threaten independent research firms.(News)

Pensions & Investments, September, 2004 by Crawford, Gregory

Byline: Gregory Crawford WASHINGTON - Up to 70% of independent research firms would consider exiting the business if the Securities and Exchange Commission bans investment management firms from using soft dollars to pay for research, according to a new study. Already, uncertainty over soft-dollar regulation has cast a pall over the independent research industry, with many independent research firms either postponing adding staff or laying off workers, according to the study by Investorside Research Association, Washington, a trade group of 75 independent research firms.

"Contrary to conventional wisdom, all is not well in independent research land,'' said Scott Cleland, a co-founder and director of Investorside and chief investment officer of Precursor...

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