Securities and Exchange Commission May 2021 – Federal Register Recent Federal Regulation Documents

The Securities and Exchange Commission (``Commission'') intends to issue an order that would adjust for inflation dollar amount thresholds in the rule under the Investment Advisers Act of 1940 that permits investment advisers to charge performance-based fees to ``qualified clients.'' Under that rule, an investment adviser may charge performance-based fees if a ``qualified client'' has a certain minimum net worth or minimum dollar amount of assets under the management of the adviser. The Commission's order would increase, to reflect inflation, the minimum net worth that a ``qualified client'' must have under the rule. The order would also increase, to reflect inflation, the minimum dollar amount of assets under management. Hearing or Notification of Hearing: An order adjusting the dollar amount tests specified in the definition of ``qualified client'' will be issued unless the Commission orders a hearing. Interested persons may request a hearing by writing to the Commission's Secretary. Hearing requests should be received by the Commission's Office of the Secretary by 5:30 p.m. on June 4, 2021. Hearing requests should state the nature of the writer's interest, the reason for the request, and the issues contested. Persons who wish to be notified of a hearing may request notification by writing to the Commission's Secretary. Any such communication should be emailed to the Commission's Secretary at Secretarys-Office@sec.gov.

The Securities and Exchange Commission (the ``Commission'') is adopting amendments to Volumes I and II of the Electronic Data Gathering, Analysis, and Retrieval system (``EDGAR'') Filer Manual (``EDGAR Filer Manual'' or ``Filer Manual''), a related form, and related rules. The amendments result in a more uniform and secure process for EDGAR access by requiring certain applicants that already have an EDGAR Central Index Key (or CIK) account number, but do not have EDGAR access codes, to submit the related form and an authenticating document to obtain access to EDGAR. The related form has also been amended to update its instructions and cross-references to Volume I of the Filer Manual. The revisions to Volume II reflect additional updates to the EDGAR system.