Module 4 Flashcards
(2 cards)
1
Q
What are Falcrum fees? Who must the clients be for the IA to receive falcrum fees?
A
Performance-based fees for IA
- Natural person with $750,000 AUM or $1.5 million Net Worth ($1 million AUM, $2 million Net Worth)
- Registered Investment Companies
- Knowledgeable employees of the adviser
2
Q
What does SEC Rule 206(4)2 require the Investment Advisers to do?
A
It requires investment advisers to notify the client in writing of the place where and the manner in which the funds and/or securities will be maintained.
