Correct Option D
Sentence meaning is based on cause to effect
or one made to another to do
Cause : Since 1986 when the Department of Labor
began to allow fees of investment officers to be based on the performance of the funds they manage
Effect : several corporations
have begun paying their investment advisers a small basic fee, with a contract promising higher fees if the managers perform well.
original sentence:
Since 1986 when the Department of Labor began
to allow investment officers' fees to be based on how the funds they manage perform, several corporations began paying their investment advisers a small basic fee, with a contract promising higher fees if the managers perform well.
Elimination Process :
1.
began to allow to
have begun paying - Eliminates
A, B, and E(A) investment officers' fees to be based on how the funds they manage perform, several corporations
began(B) investment officers' fees to be based on the performance of the funds they manage, several corporations
began(E) that investment officers' fees be based on the performance of the funds they manage, several corporations
began2. Remaining with C, and D
C has flaw [usage of
that fees, refer to allow / usage of
How - undescribable] makes its wordy and looses grip on intended meaning.
(C) that fees of investment officers be based on how the funds they manage perform, several corporations have begun.
(D) fees of investment officers
to be based on the performance of the funds they manage, several corporations
have begun -
Correct option D