In a soft-dollar arrangement, what is NOT allowed for a broker-dealer to provide to an investment adviser?

In a soft-dollar arrangement, broker-dealers can provide certain services or benefits to investment advisers in exchange for the adviser directing trades to the broker-dealer. However, the primary focus of these arrangements is to benefit the client’s investment decisions rather than to provide tangible goods or non-research-related services.

The correct answer indicates that providing furniture for a new office is not permissible under such arrangements. Soft-dollar arrangements are meant to facilitate the adviser's ability to provide better research and analysis for their clients, focusing on services that directly impact investment decision-making. In contrast, providing physical items like furniture doesn't contribute to that goal and could raise ethical concerns around the use of client commissions for the personal or operational benefits of the investment adviser.

On the other hand, research reports, trade execution services, and access to financial seminars are all services that can be beneficial for an investment adviser since they contribute to a better understanding of the market and improve the adviser’s ability to serve clients.