SEC Increases Client Thresholds for Performance Fees

Simon RivelesUncategorized

On July 12, 2011 the SEC raised the thresholds governing whether an investment adviser can charge clients performance fees. Under the order, implementing Dodd-Frank rules, an investment adviser will be able to charge performance fees if the client has at least $1 million under management with the adviser, or if the client has a net worth of more than $2 million. This threshold will be adjusted for inflation every five years.

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