Business PracticesPregunta 80 de 100
An investment adviser wants to charge a fee based on a share of the capital gains in a client's account. Under NASAA rules, such a performance-based fee is:
a.Prohibited for every client without exception
b.Permitted only for clients who meet defined net worth or assets-under-management standards, with the arrangement and its risks disclosed in writing
c.Permitted for any client who signs a waiver
d.Permitted only if the adviser also guarantees against loss
Explicación
Performance-based compensation is limited to clients who satisfy financial thresholds designed to identify investors able to bear the incentive risk, and the arrangement must be disclosed along with the conflicts it creates. A client waiver cannot substitute for the eligibility standards, and provisions purporting to waive compliance with the act are void. Guaranteeing against loss is itself prohibited, so it could never be a condition of a permitted fee.
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