Every five years, the US Securities and Exchange Commission is required to adjust for inflation the agency’s dollar-based qualification tests for when an SEC-registered investment adviser can receive compensation based on investment performance. Those tests establish “qualified client” status. The SEC has concluded its current review and will increase the net worth requirement for qualified client status to $2.1 million (up from $2 million) effective August 15, 2016. An alternative test, which is based on the client’s assets under management with the adviser, will stay at $1 million under management.