Registered advisers should take note that on June 17th, the SEC adjusted the dollar amount thresholds for clients of registered advisers to be deemed to be “qualified clients” under rule 205-3 of the Investment Advisers Act of 1940, which permits registered investment advisers to charge performance-based fees to such clients. Upon the effective date of August 16, 2021, the assets-under-management and net worth thresholds under rule 205-3 will now be $1,100,000 and $2,200,000, respectively.

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