An investment adviser representative has joined the local golf club, where there are many wealthy club members. At the club, the IAR has met many individuals who are interested in having her investment advisory firm manage their money. As an inducement only available to club members, the IAR offers to reduce the annual management fee to .25% of annual average net assets from the usual fee of .35%, conditioned upon a minimum of $500,000 being invested by that club member. Which statement is TRUE about this offer? A. This is a prohibited discriminatory fee arrangement under both NASAA and SEC rules
B. This is a permitted fee arrangement because it is conditioned upon a minimum investment of $500,000
C. This is a permitted fee arrangement as long as the existence of the negotiated discount is disclosed in the Form ADV Part 2A
D. This is a permitted fee arrangement only if the State Administrator approves of the arrangement prior to the acceptance of the offer by any club member