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Dodd-Frank Regulatory Reform Rules

SEC - Final rule allowing investment advisers to charge performance based compensation to "qualified clients."

An investment adviser generally is restricted from entering into a contract that provides for compensation to the adviser based on a share of capital gains on the funds of a client. An investment adviser is exempt from the restrictions in certain circumstances. The final rule revises the dollar amount thresholds that are used to determine whether an individual or company is a "qualified client" for purposes of the exemptions. The SEC published its intent to issue an order revising the dollar amount on May 13, 2011 (76 FR 27959). The resulting order was published on July 15, 2011 (76 FR 41838).


Published: 2/22/2012
Effective Date(s): 5/22/2012

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Comment period is closed.

Agency Information:

Agency: SEC
Agency Reference: Release No. IA-3372, File No. S7-17-11

DFA Section(s):


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