Tweaking The Investment Adviser Performance Fee Rule
March 8, 2012, 1:18 PM EST
Law360, New York (March 8, 2012, 1:18 PM EST) -- Recently, the U.S. Securities and Exchange Commission announced that it is adopting amendments which will adjust certain dollar thresholds set forth in Rule 205-3 of the Investment Advisers Act of 1940 (the “Advisers Act”), the rule which permits investment advisers to charge a performance fee to “qualified clients.”
The amendments also: (i) require adjustments of these dollar amount thresholds every five years for inflation, (ii) exclude the value of a person’s primary residence and certain associated debt in determining whether a person has sufficient net worth to be...
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