Investment Adviser Performance Compensation
11 Jul 2011
Source: Securities and Exchange Commission
Deadline: 11 July 2011
Following a requirement contained in the Dodd-Frank Act, the Securities and Exchange Commission has published its plan to raise certain dollar thresholds that would need to be met before investment advisers can charge their clients performance fees.
The SEC is seeking public comments on its proposed amendment to “1) provide the method for calculating future inflation adjustments of the dollar amount tests; 2) exclude the value of a person’s primary residence from the determination of whether a person meets the net worth standard; 3) modify the transition provisions of the rule to take into account performance fee arrangements that were permissible at the time the adviser and client entered into their advisory contract”.
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