SEC Proposes to Expand Performance-Based Compensation for Registered Funds and BDCs and Broaden the Qualified Client Standard
Wednesday, October 21, 2026 · first reported by JD Supra
A September 30, 2026 SEC proposal would amend Advisers Act Rule 205-3 to let a wider group of fund advisers charge performance fees. Covered funds are mutual funds, ETFs, BDCs and closed-end funds. Fees could be based on gains that are realized or unrealized, with a 20% cap. The proposal adds board governance requirements and findings, along with new disclosure. It would also broaden the qualified client standard.
- Geography
- North America
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Coverage
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- MA Financial halts redemptions for five months in unlisted RE credit fundMoney Management +1
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- China's 10 Billion Yuan Hedge Fund Hangzhou Turing Hit With Three Warning Letters in One Day; 1992-Born Female Chief and Risk Control Head Both Held Accountablefinance.biggo.com
- California OHCA Finalizes AB 1415 Regulations: Key Takeaways for Private Equity, Venture Capital, and MSO TransactionsJD Supra
- FCA concludes its investigation into Home REIT with no further action plannedInvestment Week