under which of the following circumstances does nasaa allow an investment adviser to charge performance-based fees? the client must initially have $1.1 million under management or a net worth in excess of $2.2 million. compensation paid in this way must be for gains reduced by losses. disclosure must be made that the fee arrangement may create an incentive for the investment adviser to make investments that are riskier or more speculative than would be the case in the absence of a performance fee.