# Performance-Based Investment Advisory Fees
> **US Securities and Exchange Commission** · Final rule. · Published 2021-11-10 · Effective 2021-11-10 · 86 FR 62473
## Document
- **Document number:** 2021-24525
- **Category:** final-rule
- **Agency:** US Securities and Exchange Commission
- **Federal Register citation:** 86 FR 62473
- **CFR reference:** 17 CFR 275
- **Publication date:** 2021-11-10
- **Effective date:** 2021-11-10
- **Docket:** Release No. IA-5904
## Abstract

The Securities and Exchange Commission ("Commission" or "SEC") is adopting amendments to the rule under the Investment Advisers Act of 1940 ("Advisers Act") that permits investment advisers to charge performance-based compensation to "qualified clients." The rule defines "qualified client" with reference to specific dollar amount thresholds, which are required to be adjusted every five years to account for the effects of inflation. These amendments replace specific dollar amount thresholds in the rule's "qualified client" definition with references to the Commission's "most recent order," as defined by the amended rule, containing the specific dollar amount thresholds adjusted for inflation.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2021/11/10/2021-24525/performance-based-investment-advisory-fees)
---
*AI Analytics · CC0 1.0*