On July 12, 2011, the SEC issued an order increasing for inflation the dollar thresholds for eligibility for qualified client status.  However, the SEC has not adjusted and has not expressed any intent to adjust the qualified purchaser threshold for inflation.  Therefore, the gap between the eligibility thresholds for qualified client status and qualified purchaser status is narrowing – and, accordingly, so is the scope of utility of the 3(c)(1) hedge fund structure.