The SEC Raises Performance Fee Requirements for US Advisers

July 22, 2011
Effective September 19, 2011, the Securities and Exchange Commission has increased the client net worth and assets under management requirements applicable to U.S.-registered investment advisers that rely on Rule 205-3 under the Investment Advisers Act of 1940 to charge performance fees. This update examines these changes, which will impact the types of client accounts and private fund investor accounts that may be subject to performance fees charged by such advisers.