Section R164-2-6 - Compensation Formula The compensation paid to an investment adviser for the performance of any securities over a given period must be based on a formula with the following characteristics:
(1) as to securities for which market quotations are readily available within the meaning of Rule 2a-4(a)(1) under the Investment Company Act of 1940, 17 CFR 270.2a-4(a)(1) (2020), the formula must include the realized capital losses and unrealized capital depreciation of the securities over the period;(2) as to securities for which market quotations are not readily available within the meaning of Rule 2a-4(a)(1) under the Investment Company Act of 1940 the formula must include: (a) the realized capital losses of securities over the period; and(b) if the unrealized capital appreciation of the securities over the period is included, the unrealized capital depreciation of the securities over the period; and(3) the formula must provide that any compensation paid to the investment adviser under this rule is based on the gains less the losses, computed in accordance with Subsections R164-2-6(1) and R164-2-6(2), in the client's account for a period of not less than one year.Utah Admin. Code R164-2-6
Adopted by Utah State Bulletin Number 2022-07, effective 3/11/2022