On July 12, 2011, the SEC issued an order (the “Order”) that raises the dollar amount thresholds in the assets-under-management and net worth tests in the definition of “qualified client” under rule 205-3 under the Investment Advisers Act of 1940 (the “Advisers Act”). Pursuant to the Order, the assets-under-management and net worth prongs of the definition of “qualified client” will be adjusted from $750,000 to $1,000,000 and $1,500,000 to $2,000,000, respectively. The SEC previously indicated on May 10, 2011 that it would issue the Order in a rule proposal regarding proposed amendments to rule 205-3, as discussed in the May 17, 2011 Investment Management Regulatory Update.On July 12, 2011, the SEC issued an order (the “Order”) that raises the dollar amount thresholds in the assets-under-management and net worth tests in the definition of “qualified client” under rule 205-3 under the Investment Advisers Act of 1940 (the “Advisers Act”). Pursuant to the Order, the assets-under-management and net worth prongs of the definition of “qualified client” will be adjusted from $750,000 to $1,000,000 and $1,500,000 to $2,000,000, respectively. The SEC previously indicated on May 10, 2011 that it would issue the Order in a rule proposal regarding proposed amendments to rule 205-3, as discussed in the May 17, 2011 Investment Management Regulatory Update.

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