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Clifford Chance

Clifford Chance

Briefings

SEC Amends Definition of 'Qualified Client' under the Investment Advisers Act of 1940

22 February 2012

On February 15, 2012, the Securities and Exchange Commission (the "Commission") adopted amendments to rule 205-3 under the Investment Advisers Act of 1940 (the "Advisers Act"). The rule amendments alter dollar amount thresholds that determine a “qualified client” under the rule, mandate adjustments for inflation, exclude the value of a natural person’s primary residence from the rule’s net worth test and add certain transition provisions. The rule amendments take effect 90 days after publication in the Federal Register.

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