Effective September 19, 2011, the SEC has raised the thresholds an investor must meet to be considered a qualified client on the basis of assets under management or net worth. The thresholds are now $1 million in assets under management (previously $750,000) and $2 million in net worth (previously $1.5 million). A qualified client may compensate an investment adviser based on performance.
Source: SEC Release 3236
Prior related alert: SEC proposes rule to change standards for “qualified clients”
This alert is relevant to the Series 63, Series 65, Series 66, and Series 24.