New Limits for Qualified Clients

The SEC adjusted the definition of “qualified clients,” becoming effective on August 16, 2021, pursuant to the  Dodd-Frank Act of 2010, requiring such an adjustment for inflation every five years.  Investment Advisers Act of 1940 Section 205(a)(1) prohibits an RIA from charging a client a performance-based fee unless the client is a qualified client having a particular new work.

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