CAPIS Applauds SEC Decision to Preserve “Soft Dollars”

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New guidance protects the role of independent research and requires all soft-dollar expenditures to benefit investors.

Capital Institutional Services, Inc. (CAPIS), a Dallas-based institutional brokerage firm, today expressed its strong support for the recently published guidance from the Securities & Exchange Commission (SEC) that preserves and protects the use of soft dollar commission payments to brokerage firms. The SEC guidance, which was released on October 19, permits the continued use of brokerage commission fees for research services that benefit investors.

Kristi Wetherington, President of CAPIS, stated, “This is a major victory for investors and brokerage firms as well as independent research providers that offer value-added services to money managers. We are very pleased that the SEC took the time to carefully understand this issue and recognize that without allowing money management firms to procure research and other important services as part of brokerage commissions, individual investors would pay the price in less informed and less efficient management of their money. We are also pleased that the SEC provided guidance on the exclusion of certain types of inappropriate services from being covered. This will further protect the integrity of legitimate third party expenditures.”

The interpretive release, expected to be adopted following a 30-day comment period, lifts the cloud of uncertainty for fund managers who have chosen to refrain from utilizing soft dollars pending the outcome of the SEC’s review.

Ms. Wetherington added, “The SEC’s guidance provides much-needed clarity and will allow our customers to be entirely comfortable in their ability to access the important services we provide. As one of the largest independent institutional brokerage firms, we distinguish ourselves by the quality of our service and support. The SEC’s decision ensures our customers will continue to be able to fully access our expertise for the benefit of their investors.”

The full SEC report is available at

About Capital Institutional Services, Inc.

Capital Institutional Services, Inc. (CAPIS) is a leading U.S. institutional brokerage firm specializing in global agency trading and independent research distribution for asset managers and plan sponsors. CAPIS has successfully developed and provided an array of brokerage solutions specifically tailored to the institutional marketplace since 1977. CAPIS executes all trades on an agency basis, eliminating any conflict of interest; and plan sponsors, investment managers and broker-dealers have come to trust CAPIS for its expertise in directed brokerage, transition management and commission recapture relationships.

CAPIS is a member of the New York Stock Exchange, American Stock Exchange, Pacific Stock Exchange, the National Association of Securities Dealers, and SIPC. For more information, visit or call 800.247.6729.    

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Kristi Wetherington



James Morrow

Chief Operating Officer of Sales and Trading


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Kristi Wetherington