Seward & Kissel briefing: SEC increases the net worth threshold for qualified clients
Seward & Kissel provide an overview of Subscription Agreements and other documents which must be updated to reflect the increased net worth threshold for "qualified clients".
On 02 August 2016, Seward & Kissel published a memorandum noting the US Securities and Exchange Commission's (SEC’s) Order of 14 June 2016, which increases the net worth threshold for "qualified clients" from $2m to $2.1m under Section 205 of the Investment Advisers Act of 1940 and Rule 205-3.
The Order became effective on 15 August 2016 and will only apply to investment advisory contracts entered into on or after that date.
For more information contact an attorney at Seward & Kissel or the Simmons & Simmons contacts above.
