WASHINGTON, Oct. 6 -- Securities And Exchange Commission has issued a proposed rule called: Investment Adviser Performance-Based Compensation Modernization.
The proposed rule was published in the Federal Register on Oct. 6 by Vanessa A. Countryman, Secretary.
Summary: The Securities and Exchange Commission (the "Commission") is proposing to amend the rule under the Investment Advisers Act of 1940 that provides an exemption from the statutory prohibition on registered investment advisers receiving compensation on the basis of a share of capital gains in or capital appreciation of an advisory client's account. Specifically, the proposed amendments would expand the ability of investment advisers to receive this compensation from clients that...