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Jun 27, 2016

SEC Increases Qualified Client Net Worth Threshold

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Every five years, the US Securities and Exchange Commission is required to adjust for inflation the agency’s dollar-based qualification tests for when an SEC-registered investment adviser can receive compensation based on investment performance. Those tests establish “qualified client” status.  The SEC has concluded its current review and will increase the net worth requirement for qualified client status to $2.1 million (up from $2 million) effective August 15, 2016.  An alternative test, which is based on the client’s assets under management with the adviser, will stay at $1 million under management.

View full memo, SEC Increases Qualified Client Net Worth Threshold

Authors and Contributors

Nathan Greene

Partner

Investment Funds

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+1 212 848 4668

New York

Thomas Majewski

Counsel

Investment Funds

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New York

John Adams

Partner

Investment Funds

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London

Geoffrey Goldman

Partner

Derivatives & Structured Products

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+1 212 848 4867

New York

John Reiss

Counsel

Investment Funds

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New York

Lorna Xin Chen

Partner

Investment Funds

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Hong Kong

Donna Parisi

Partner

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New York

Azam Aziz

Partner

Derivatives & Structured Products

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Paul Schreiber

Of Counsel

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Laura Friedrich

Partner

Investment Funds

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+1 212 848 7411

New York