Securities and Exchange Commission 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.