kaal:claim:2337268-001

The Investment Advisers Act prohibits contingent fee arrangements between investment advisers and their clients because such arrangements could induce inappropriate risk taking by the adviser.

Source quote, verbatim

Because contingent fee arrangements could lead to inappropriate risk taking by investment advisers, contingent fee arrangements between investment advisers and their clients are prohibited.7

From

Wulf A. Kaal, Investment Adviser Regulation (2013), Introduction, p. 4
https://ssrn.com/abstract=2337268 · source PDF

Cite as

Wulf A. Kaal, Investment Adviser Regulation (2013). SSRN: https://ssrn.com/abstract=2337268

Holds when

advisory contracts governed by the IAA
outside the post 1985 exemption for certain qualifying large advisory contracts

Classification

mechanismsupport: assertedprivate-fundsrisk-and-incentives

Verify

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Attestation record: colloquium/attestations/f084d0312172f359...json
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