15 CSR 30-51.145 - Compensation Arrangements Involving Investment Advisers

PURPOSE: This rule permits compensation arrangements presently allowed by the United States Securities and Exchange Commission.

(1) Registered investment advisers may pay a cash fee to a solicitor who refers business to the investment adviser (but does not render any investment advice) as long as the solicitor is not subject to a disqualification as set out in section 409.4-412(d), RSMo and the cash fee is paid pursuant to the requirements set out in 17 CFR Section 275.206(4)-3.

(2) Registered investment advisers may receive performance-based fees (fees based upon a share of the capital gains upon, or the capital appreciation of, the funds, or any portion of the funds, of a client) provided that the fees are charged only to qualified clients, as defined in 17 CFR Section 275.205-3, and the fees are fully disclosed in the investment advisory contract.

Notes

15 CSR 30-51.145

AUTHORITY: sections 409.4-406(e) and 409.6-605, RSMo Supp. 2003.* Original rule filed March 27, 1989, effective June 12, 1989. Emergency amendment filed Aug. 27, 2003, effective Sept. 12, 2003, expired March 9, 2004. Amended: Filed Aug. 28, 2003, effective Feb. 29, 2004.

AUTHORITY: sections 409.4-406(e) and 409.6-605, RSMo Supp. 2003.* Original rule filed March 27, 1989, effective June 12, 1989. Emergency amendment filed Aug. 27, 2003, effective Sept. 12, 2003, expired March 9, 2004. Amended: Filed Aug. 28, 2003, effective Feb. 29, 2004.