Common Contracts
1 similar Commission Sharing Agreement contracts
Commission sharing agreement vs soft dollarCommission Sharing Agreement • December 24th, 2020
The Commission Sharing Agreement (CSA), or in the U.S.-named Client Commission Agreement (CCA), is a type of soft dollar agreement that allows money managers to pay brokers separately to make trades and requires the broker to allocate part of the commission directly to an independent research provider. [1] CSAs include a percentage of the implementation fee, which is instructed to pay for research reports from the seller bank. The form of a CSA can be as short as a page. [2] One of the disadvantages of CSAs is partner risk, which the broker becomes when cash is kept on the broker's balance table[3] and not in separate client accounts. Moves included in MiFID II such as the creation of research payment accounts (RPAs) are aimed at solving this problem. Reference ^ IND-X Advisors | Home (PDF). Retrieved February 29, 2012. ^ Example of CSA (PDF). Archived from the original (PDF) on March 19, 2015. Retrieved February 29, 2012. ^ Are CCAs safe? - Increasing partner risk motivates the buyer
