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 "identifier": "kaal:entity:net-worth-test",
 "name": "Net worth test",
 "termCode": "net-worth-test",
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 "author": {
  "@type": "Person",
  "name": "Wulf A. Kaal",
  "identifier": "https://orcid.org/0000-0003-0757-275X"
 },
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 "subjectOf": [
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/2337268-029",
   "identifier": "kaal:claim:2337268-029",
   "text": "The Dodd-Frank Act added an inflation adjustment to the qualified client standard, requiring the SEC to adjust any dollar amount test within one year of enactment and every five years thereafter.",
   "abstract": "If the SEC uses a net asset threshold or any other dollar-amount test to determine the qualified client standard for exemption under the IAA, the SEC is required to adjust the dollar-amount test for the effects of inflation within one year after enactment and every five years thereafter.91",
   "citation": "Wulf A. Kaal, Investment Adviser Regulation (2013). SSRN: https://ssrn.com/abstract=2337268",
   "datePublished": "2013",
   "claim_type": "condition",
   "confidence": "asserted",
   "is_failure_mode": false,
   "scope_conditions": [
    "SEC use of a net asset or dollar amount test for qualified client status"
   ],
   "source_pdf_sha256": "7075ce35282a8ee75b81ae3dec0e19f68631beae7f3c3a00ab2827538dc9e302",
   "status": "current"
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  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/2337268-030",
   "identifier": "kaal:claim:2337268-030",
   "text": "The SEC excludes the value of a primary residence and related debts from the qualified client net-worth test because persons who clear the threshold only by counting their home are less able to bear the risk of performance fee arrangements.",
   "abstract": "Because persons who meet the net-worth test by virtue of including the value of their primary residence are less likely to be able to bear the risk of performance fee arrangements, the SEC excludes the value of a person's primary residence and related debts from the net-worth test.",
   "citation": "Wulf A. Kaal, Investment Adviser Regulation (2013). SSRN: https://ssrn.com/abstract=2337268",
   "datePublished": "2013",
   "claim_type": "mechanism",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
    "net-worth test for qualified client status under the IAA"
   ],
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   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/2337268-031",
   "identifier": "kaal:claim:2337268-031",
   "text": "Excluding the primary residence from the net-worth test removed a large population from qualified client status: SEC estimates suggest roughly 1.3 million households no longer qualify under the revised test.",
   "abstract": "SEC estimates suggest that with the exclusion of the primary residence from the net-worth test, roughly 1.3 million households were excluded from qualifying under the revised net-worth test.93",
   "citation": "Wulf A. Kaal, Investment Adviser Regulation (2013). SSRN: https://ssrn.com/abstract=2337268",
   "datePublished": "2013",
   "claim_type": "empirical",
   "confidence": "evidenced",
   "is_failure_mode": false,
   "scope_conditions": [
    "households assessed under the revised net-worth test"
   ],
   "source_pdf_sha256": "7075ce35282a8ee75b81ae3dec0e19f68631beae7f3c3a00ab2827538dc9e302",
   "status": "current"
  }
 ],
 "description": "3 claims in the published works of Wulf A. Kaal carry the concept tag 'net-worth-test'. Derived node: a roster, not an adjudicated definition."
}