Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

Tag Archives: Investment Company Act of 1940

SEC Increases Dollar Amount of the Net Worth Threshold Test for ‘Qualified Clients’ in Rule 205-3 Under the Investment Advisers Act of 1940

Posted in Investment Companies and Investment Advisers, Private Investment Funds
Section 205 under the Investment Advisers Act of 1940 generally prohibits a federally registered investment adviser (RIA) from receiving compensation based on a share of the capital gains on or appreciation of the assets of an advisory client (i.e., performance fees). Rule 205-3 under the Advisers Act provides an exemption from this prohibition for clients… Continue Reading