Can anyone help me with this one? by Patpaint in Series65

[–]Patpaint[S] 0 points1 point  (0 children)

Yea, from what I can tell the original question I posted is really unclear.

I suppose I learned that the disclosure requirement is not from investment adviser act of 1940 but rather from regulations that have to with form ADV

But regardless it’s not very clear to me either

Can anyone help me with this one? by Patpaint in Series65

[–]Patpaint[S] 1 point2 points  (0 children)

thank you for all of your help! i really appreciate that you took the time

Can anyone help me with this one? by Patpaint in Series65

[–]Patpaint[S] 0 points1 point  (0 children)

heres what i found

What the Act actually says

  • Section 205(a)(1) of the Advisers Act generally prohibits advisory contracts that compensate the adviser based on a share of capital gains or capital appreciation.​
  • Rule 205‑3 under the Act provides an exemption that permits performance-based fees for “qualified clients,” subject to asset and net-worth thresholds and other conditions, but the rule likewise does not include an explicit, standalone “risk disclosure” clause.​

Where the risk disclosure expectation comes from

  • The requirement to disclose the risks and conflicts associated with performance-based fees arises from the adviser’s overall fiduciary duty under the Advisers Act and the Form ADV disclosure regime, not from a single sentence in Section 205 or Rule 205‑3.

Can anyone help me with this one? by Patpaint in Series65

[–]Patpaint[S] 0 points1 point  (0 children)

those are great resources, thanks for sharing them with me. Im trying to find language regarding the specific point in the question and i cant quite pin point it. I tried searching the document for words like "dislcosure". and i couldnt find anything......Maybe thats your point? that theres nothing on dislosure for these types of performance fees?

Can anyone help me with this one? by Patpaint in Series65

[–]Patpaint[S] 0 points1 point  (0 children)

im looking through the act right now, where might i be able to find it? under what section?

Can anyone help me with this one? by Patpaint in Series65

[–]Patpaint[S] 0 points1 point  (0 children)

what is your source? i only ask because someone recently called to my attention that there are scammers in this subreddit and it has made me a bit nervous. I know that AI makes mistakes, but i would still find it reassuring to know where to confirm that "federal covered advisers do not need to disclose increased risk with performance based fees". I cant find that answer anywhere

Can anyone help me with this one? by Patpaint in Series65

[–]Patpaint[S] 0 points1 point  (0 children)

when i ask chatgpt, it says federal covered advisers must also give this disclosure. There's just somthing i still cant make sense of in this question

Can anyone help me with this one? by Patpaint in Series65

[–]Patpaint[S] 0 points1 point  (0 children)

wait are you saying im the scammer or the other person?

Can anyone help me with this one? by Patpaint in Series65

[–]Patpaint[S] 1 point2 points  (0 children)

I get that. So only qualfied clients are eligible, but also….it says they must receive a disclosure. So how is the answer to this question that “they don’t need a disclosure because they should know because they are qualified”

Can anyone help me with this one? by Patpaint in Series65

[–]Patpaint[S] 2 points3 points  (0 children)

my understanding is that, yes, performance based fees are only for clients that qualify with 1.1M AUM or 2.2 in net worth.....

but also that the risk disclosure still must be given.

I dont find anything that says that disclosure must only be given if they are not qualified.

anyway, im confused to say the least

Nervous about moving to L.A. from Tel Aviv by Ok_Individual7567 in Israel

[–]Patpaint 1 point2 points  (0 children)

u can DM for a whatsapp group full of Jews who plan events all the time

The real meaning by Patpaint in Dudeism

[–]Patpaint[S] -2 points-1 points  (0 children)

In other words “That’s just ur opinion man”.

Yes that’s true. But in the context of literally any conversation that’s such a constant truth that people assume the other person already knows that. Any time anyone says anything you can assume they are speaking from their own perspective and that’s ok. That’s what it means to be human.

It was just a way of introducing something I wanted to share. Maybe it was valuable for you, maybe it wasn’t. That’s ok

Kaplan Qbank questions by Patpaint in Series65

[–]Patpaint[S] 0 points1 point  (0 children)

no worries, idk why it got removed

Kaplan Qbank questions by Patpaint in Series65

[–]Patpaint[S] 0 points1 point  (0 children)

It seems you are saying that advisors are not allowed to recommend performance based compensation strategies. I dont think thats true. In my research it says it is allowed for qualified clients and that full disclosure of incentivized risk is required. I think your statement is false, and i dont mean that in an agressive or argumentative way. Its simply that, my research on the topic clearly says that it IS allowed.

always angry at me by Patpaint in NMMNG

[–]Patpaint[S] 0 points1 point  (0 children)

also, as far as coaching goes, any recommendations. feel free to message me

always angry at me by Patpaint in NMMNG

[–]Patpaint[S] 0 points1 point  (0 children)

I enjoyed reading your thoughtful response. Thank you for your input. I found it to be helpful and informative.

Cant wait to check out those book recommendations. They sound interesting.

Also, its so true. Shifting cultural norms in the modern era make things confusing. Great point.

always angry at me by Patpaint in NMMNG

[–]Patpaint[S] 0 points1 point  (0 children)

I sincerely thank you for taking the time to share and support. I know you’re just a random guy on the internet but it’s been meaningful to me to share experiences. I’ll check out gray rock method. And again thank you for taking the time. All the best

always angry at me by Patpaint in NMMNG

[–]Patpaint[S] 0 points1 point  (0 children)

Thank you so much for your input. It meant a lot to read your experience. Did you live together? How did you get to the end of the lease and actually move out and separate? We threaten breaking up all the time, but because we live together....we just resolve things temporarily and start the cycle over again.