SEC to Make Inflation Adjustments to Net Worth Thresholds for Qualified Clients (Fed. Reg.)

The SEC announced its intention to issue an order that would increase and adjust for inflation the dollar amount thresholds applicable to the minimum net worth requirement of "qualified clients," as defined in Rule IAA 205-3 under the Investment Advisers Act. Rule IAA 205-3 permits investment advisers to charge performance-based fees to such clients. The order would not increase the minimum dollar amount of assets under management requirement.