On September 19, 2011, the Securities and Exchange Commission’s (the “SEC”) increased dollar amount thresholds for “qualified clients” as defined under rule 205-3 of the Investment Advisers Act of 1940, as amended, will go into effect. Currently, an investment adviser registered with the SEC may only charge a performance fee in respect of investors who have at least $750,000 under management with the adviser, have a net worth of more than $1.5 million, or are a qualified purchaser, as defined in section 2(a)(51)(A) of the Investment Company Act of 1940. The new thresholds increase the assets under management and net worth tests to $1,000,000 and $2,000,000, respectively.
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