Federal Register #Release No. IA-6955

SEC Proposed Rule to Adjust Performance-Based Investment Advisory Fee Thresholds for Inflation

This notice from the Securities and Exchange Commission (SEC) announces a proposed regulatory adjustment to performance-based investment advisory fee thresholds: - Government Buyer: - Securities and Exchange Commission (SEC), a U.S. federal agency - OEMs and Vendors: - No OEMs or vendors are involved, as this is a regulatory action - Products/Services Requested: - Not applicable; the action adjusts regulatory thresholds, not a procurement of goods or services - Key Regulatory Changes: - Raises the minimum assets under management for 'qualified clients' from $1,100,000 to $1,400,000 - Raises the minimum net worth requirement from $2,200,000 to $2,700,000 - Adjustments are based on inflation calculations using the Personal Consumption Expenditures Chain-Type Price Index (PCE Index) from the U.S. Department of Commerce - Unique/Notable Requirements: - This is a regulatory change affecting investment advisers and their clients, not a solicitation for products or services - No procurement or contracting actions are associated with this notice

Description

The Securities and Exchange Commission (SEC) intends to issue an order adjusting for inflation the dollar amount thresholds in the Investment Advisers Act of 1940 rule that permits investment advisers to charge performance-based fees to "qualified clients." The order will increase the minimum net worth and minimum assets under management required for clients to be eligible for performance-based fees. This adjustment reflects inflation since the last update and aims to maintain the rule's relevance. Comments on the proposed order are due by April 27, 2026.

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