kaal:claim:2337268-042

The IAA bars compensation tied to the performance of the client's account but permits compensation tied to the average value of the client's assets, so fee regulation targets performance linkage rather than asset based fees.

Source quote, verbatim

It also prohibits performance-based compensation if the adviser's fee is linked to the performance of the client's account.110 The IAA does, however, allow investment advisers to tie their compensation to the average value of the client's assets.111

From

Wulf A. Kaal, Investment Adviser Regulation (2013), 10. Fees, p. 22
https://ssrn.com/abstract=2337268 · source PDF

Cite as

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

Holds when

fee arrangements in advisory contracts under the IAA

Classification

conditionsupport: assertedprivate-funds

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