The Securities and Exchange Commission is asking for comments on a proposed rule that would raise the threshold for when registered investment advisers could charge performance-based fees. The SEC is required to adjust the level to account for inflation as part of the Dodd-Frank Act. The new rule would raise the requirement for qualified clients to $1 million in assets under management and a net worth of $2 million. The shift is expected to disqualify roughly 195,000 households from performance fees.
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