Data / Federal rules / 2026-20474
Investment Adviser Performance-Based Compensation Modernization
The Securities and Exchange Commission published this proposed rule in the Federal Register on October 6, 2026. It took effect on October 6, 2026. Comments are due by December 7, 2026.
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What the agency says
The Securities and Exchange Commission (the "Commission") is proposing to amend the rule under the Investment Advisers Act of 1940 that provides an exemption from the statutory prohibition on registered investment advisers receiving compensation on the basis of a share of capital gains in or capital appreciation of an advisory client's account. Specifically, the proposed amendments would expand the ability of investment advisers to receive this compensation from clients that are registered management investment companies and business development companies (collectively, "regulated funds"), subject to certain conditions. The proposal would relatedly amend certain regulated fund registration and reporting forms to require separate disclosure of all performance-based compensation paid by regulated funds to their investment adviser. The proposed rule amendments would also allow investment advisers to receive this compensation from additional clients by revising the rule's "qualified client" definition to include investors that meet the "accredited investor" definition in Regulation D under the Securities Act of 1933. The proposal would relatedly make conforming amendments to certain other rules under the Investment Advisers Act of 1940 whose provisions reference the "qualified client" definition.
Key facts
- Document number
- 2026-20474
- Type
- Proposed rule
- Action
- Proposed rule
- Agency
- Securities and Exchange Commission
- Published
- October 6, 2026
- Takes effect
- October 6, 2026
- Comments due
- December 7, 2026
- Dates
- This release was published in the Federal Register on October 6, 2026. Comments should be received on or before December 7, 2026.
- Docket
- Release Nos. 33-11443; 34-106533; IA-7022; IC-36350; File No. S7-2026-28
- Regulation ID (RIN)
- 3235-AN59
- Code of Federal Regulations
- 17 CFR 239; 17 CFR 249; 17 CFR 274; 17 CFR 275
- Topics
- Brokers; Fraud; Investment companies; Reporting and recordkeeping requirements; Securities
- Pages
- 70
Other documents from the Securities and Exchange Commission
| Document | Type | Published |
|---|---|---|
| List of Rules To Be Reviewed Pursuant to the Regulatory Flexibility Act 2026-21657 | Proposed rule | Oct 23 |
| Interval Fund Modernization; Expansion of Multiple Share Class to Registered Closed-End Management Investment Companies and Business Development Companies C1-2026-20360 | Proposed rule | Oct 20 |
| Investment Company Cross Trading 2026-21037 · significant | Proposed rule | Oct 15 |
| Adviser and Regulated Fund Custody Rules; Crypto Custody Rules 2026-20466 · significant | Proposed rule | Oct 6 |
| Adoption of Updated EDGAR Filer Manual 2026-20461 | Final rule | Oct 6 |
| Interval Fund Modernization; Expansion of Multiple Share Class to Registered Closed-End Management Investment Companies and Business Development Companies 2026-20360 | Proposed rule | Oct 5 |
| Commission Quorum Requirement 2026-20262 | Final rule | Oct 2 |
| Rescission of Rule 14a-8's Federal Regulation of Shareholder Proposals and Amendments to Rule 14a-4 2026-19260 · significant | Proposed rule | Sep 21 |
Everything from the Securities and Exchange Commission · Rules on brokers · Rules on fraud · Rules on investment companies · Published in October 2026
Read from the Federal Register API, last updated 2026-10-24. The document on federalregister.gov is the official record; dates and dockets can change through later corrections. Free to reuse with credit to SpecStream under CC BY 4.0.