Performance-Based Investment Advisory Fees

What it does

The Securities and Exchange Commission (the "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.

The Securities and Exchange Commission's summary, as published in the Federal Register.

What it would change

1 part of Title 17 of the Code of Federal Regulations:

17 CFR 275

What happens next and when

Hearing requests should be received by the Commission's Office of the Secretary by 5:30 p.m. on April 27, 2026.

The agency's dates, word for word.

Check it yourself

• The document in the Federal Register
• Title 17 on eCFR

The record as published

Source: the Federal Register (public domain). The document in the Federal Register