SEC Proposes Amendments to Investment Advisers Act Rules

Washington, DC, November 19, 1997 - The Securities and Exchange Commission has proposed three amendments to the rules under the Investment Advisers Act. Two amendments would exempt certain multi-state investment advisers from the prohibition on SEC registration for advisers with less than $25 million of assets under management and revise the definition of "investment adviser representative" to allow supervised persons to accept a greater number of "accommodation clients" without being subject to state qualification requirement. The third would amend Rule 205-3 under the act, the performance fee rule, to increase the criteria for clients eligible to enter into performance fee arrangements and to eliminate provisions specifying required contract terms and disclosures.

Comments are due to the SEC on the proposed amendments by January 20, 1998.