SEC Tweaks Standards For Performance-Based Advising Fees

Law360, New York (February 15, 2012, 8:33 PM EST) -- The U.S. Securities and Exchange Commission is tightening rules on investment advisory performance fees by raising the net worth requirement for investors who pay the fees, in order to tamp down on the risks associated with such fee arrangements, the SEC said Wednesday.

The agency said that under a revision to a section of the Investment Advisers Act that covers performance fees, investors must now have a net worth of at least $2 million, up from $1.5 million, or have at least $1 million of assets...
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