The SEC has approved an order adjusting for inflation the dollar-amount thresholds in Advisers Act Rule 205-3 permitting investment advisers to charge performance-based fees to “qualified clients.” The order increases the minimum net worth of a “qualified client” under Rule 205-3 from $2 million to $2.1 million and leaves intact the minimum $1-million amount for assets under management. The order is effective as of August 15, 2016.

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