SEC: Performance fee thresholds finalized; residence exclusion comment period ends

The SEC adjusted for inflation the asset thresholds that must be met before investment advisers are allowed to charge performance fees, as required by Dodd-Frank Act. The commission raised the asset amount that clients must have under management with an adviser to $1 million, from $750,000. The minimum-net-worth requirement went up to $2 million, from $1.5 million. The rules take effect Sept. 19. Read the new rules here. Comments on the related (and more controversial) SEC proposal that would exclude the value of a client’s primary residence in determining net worth were due July 11.

Related Topics: Regulatory Moves