Utah Admin. Code R164-2-6 - Compensation Formula

The compensation paid to an investment adviser for the performance of any securities over a given period must be based on a formula with the following characteristics:

(1) as to securities for which market quotations are readily available within the meaning of Rule 2a-4(a)(1) under the Investment Company Act of 1940, 17 CFR 270.2a-4(a)(1) (2020), the formula must include the realized capital losses and unrealized capital depreciation of the securities over the period;

(2) as to securities for which market quotations are not readily available within the meaning of Rule 2a-4(a)(1) under the Investment Company Act of 1940 the formula must include:

(a) the realized capital losses of securities over the period; and

(b) if the unrealized capital appreciation of the securities over the period is included, the unrealized capital depreciation of the securities over the period; and

(3) the formula must provide that any compensation paid to the investment adviser under this rule is based on the gains less the losses, computed in accordance with Subsections R164-2-6(1) and R164-2-6(2), in the client's account for a period of not less than one year.

Notes

Utah Admin. Code R164-2-6

Adopted by Utah State Bulletin Number 2022-07, effective 3/11/2022