US Investment Advisers Act of 1940 and SEC Adviser Rules (17 CFR Part 275)
Section 205 and rule 205-3: advisory contract terms, performance fees and assignment – US Investment Advisers Act of 1940 and SEC Adviser Rules (17 CFR Part 275)

US Investment Advisers Act of 1940 and SEC Adviser Rules (17 CFR Part 275) 205a-assignment-partnership: Contracts must bar assignment without client consent and, for partnerships, require notice of membership changes

What does 205a-assignment-partnership require?

Section 205(a)(2) and (3) require every advisory contract of a registered adviser to provide, in substance, that the adviser will not assign the contract without the other party's consent, and, where the adviser is a partnership, that it will notify the client of any change in the partnership's membership within a reasonable time. Rule 202(a)(1)-1 says a transaction that leaves actual control and management unchanged is not an assignment. Advisers verify the clauses in every form of agreement and run a consent process on changes of control.

Maintained by Gerard Blokdyk

Other controls in Section 205 and rule 205-3: advisory contract terms, performance fees and assignment – US Investment Advisers Act of 1940 and SEC Adviser Rules (17 CFR Part 275)

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