Saberin Data Platform's Eligibility for Soft Dollar Payments

Executive Summary

The Saberin Data Platform qualifies as eligible research under Section 28(e) of the Securities Exchange Act of 1934, allowing investment managers to use soft dollar arrangements to pay for our services. This white paper outlines the regulatory framework, compliance requirements, and practical implementation considerations for utilizing soft dollars to fund your Saberin Data Platform subscription.

Section 28(e) Safe Harbor Provisions

Section 28(e) of the Securities Exchange Act provides a safe harbor for investment managers who use client commission dollars to pay for research and brokerage services. To qualify for this safe harbor, services must meet specific criteria:

• The service must provide lawful and appropriate assistance in the investment decision-making process
• The research must be used for managing client accounts
• The arrangement must be disclosed to clients
• The manager must make a good faith determination that the commission paid is reasonable

How Saberin Data Platform Qualifies

The Saberin Data Platform meets Section 28(e) requirements through several key capabilities:

Research and Analysis Tools

• Market Data Analysis: Real-time and historical market data processing for investment research
• Risk Assessment: Comprehensive risk modeling and portfolio analysis tools
• Performance Attribution: Detailed analysis of investment performance and attribution
• Compliance Monitoring: Automated compliance checking and regulatory reporting

Investment Decision Support

• Portfolio Optimization: AI-driven portfolio construction and optimization recommendations
• Trade Analysis: Pre and post-trade analysis to support investment decisions
• Market Intelligence: Aggregated market insights and trend analysis
• Research Integration: Seamless integration with third-party research providers

Implementation Guidelines

Documentation Requirements

To properly implement soft dollar arrangements for Saberin Data Platform services, investment managers should:

• Document the research nature of services being purchased
• Maintain records of how the platform assists in investment decision-making
• Establish policies for evaluating the reasonableness of commission rates
• Implement client disclosure procedures

Best Practices

• Regular Review: Periodically assess the value and usage of platform services
• Allocation Methods: Develop fair methods for allocating soft dollar costs across client accounts
• Vendor Management: Maintain proper vendor due diligence and service agreements
• Compliance Monitoring: Regular compliance reviews of soft dollar arrangements

Regulatory Considerations

Investment managers should be aware of additional regulatory requirements:

• Form ADV Disclosure: Proper disclosure of soft dollar arrangements in Form ADV
• Client Agreements: Clear disclosure in investment management agreements
• Fiduciary Duty: Ensuring arrangements are in the best interest of clients
• Record Keeping: Maintaining adequate records per SEC requirements

Conclusion

The Saberin Data Platform's comprehensive research and analysis capabilities make it eligible for soft dollar payment arrangements under Section 28(e). Investment managers can confidently utilize client commission dollars to fund their platform subscriptions while maintaining full regulatory compliance.

For specific implementation guidance or questions about your particular use case, we recommend consulting with your compliance team and legal counsel to ensure proper documentation and disclosure procedures are followed.