What should all advisers provide regarding their Soft Dollar practices?

Advisers are required to provide detailed disclosures upon request regarding their Soft Dollar practices to ensure transparency and maintain compliance with regulatory expectations. Soft Dollars refer to the practice where advisers use client commissions to pay for research or other services, rather than directly purchasing securities.

Providing these disclosures allows clients to understand how their commissions are being utilized, the benefits they are receiving, and the associated costs. This practice aligns with fiduciary duties, where advisers must act in the best interests of their clients and provide necessary information for informed decision-making.

While financial reports, performance metrics, or records of all trades made might contain relevant information, they do not specifically address the transparency needed in Soft Dollar practices. They may not directly reflect how client funds are impacted by the adviser's Soft Dollar arrangements. Hence, the provision of detailed disclosures upon request is seen as the most direct and relevant requirement for ensuring that clients are fully informed about the potential implications of Soft Dollar transactions in their investment portfolios.