Federal Register #91 FR 23520

SEC Notice: Inflation Adjustment to Dollar Amount Tests in Rule 205-3

This notice from the Securities and Exchange Commission (SEC) announces an inflation adjustment to dollar amount tests under Rule 205-3 of the Investment Advisers Act of 1940. - Government Buyer: - Securities and Exchange Commission (SEC) - OEMs and Vendors: - No OEMs or vendors are referenced - Products/Services Requested: - No products or services are requested - Notable Requirements: - Asset-under-management threshold increased from $1,100,000 to $1,400,000 - Net worth threshold increased from $2,200,000 to $2,700,000 - These thresholds determine when investment advisers may charge performance fees to qualified clients - This is a regulatory adjustment, not a procurement or award - Place of Performance/Delivery: - SEC headquarters, 100 F Street, NE, Washington, DC - No procurement activity, contract value, or product/service line items are present

Description

This notice from the Securities and Exchange Commission announces the approval of an inflation adjustment to the dollar amount tests in Rule 205-3 under the Investment Advisers Act of 1940. The adjustment increases the asset-under-management threshold from $1,100,000 to $1,400,000 and the net worth threshold from $2,200,000 to $2,700,000. These thresholds determine when an investment adviser can charge performance fees to qualified clients. The order is effective June 29, 2026, and applies to contracts entered into after that date.

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