Hedge Funds May Soon Be Allowed to Advertise

September 2, 2012 James Heinsman In the News

The U.S. Securities and Exchange Commission put forth a motion today that may allow hedge funds to conduct advertising campaigns. In the past, the firms were only allowed to attract individual investors through private negotiations.

Commissioners from the SEC voted 4-1 in favor of encouraging public comment on a proposal for removing the limitations on private funds and startups. The new development is a result of a law that removed a ban on investment pitches to a select group of investors.

“I recognize that there are very real concerns about the potential impact of lifting the ban on general solicitation,” said Mary Schapiro, SEC Chairman, before the vote took place. “While I believe it will be incredibly important for the commission to take a thorough look at the private placement market in the future, I think at this point it is appropriate that we undertake this more narrow mandate that Congress placed upon us.”

 

Hedge Fund Advertisement, Hedge Funds, Mary Schapiro, SEC, U.S. Securities and Exchange Commission,

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