Critics Slam SEC Hedge Fund Ad Rule

The Securities and Exchange Commission’s vote last week to propose allowing hedge fund advertising opened a 30-day comment period, and the regulator is likely to get an earful.

Eliminating the 80-year-old rule against general solicitations for private offerings was mandated by April’s JOBS Act, backed by both President Barack Obama and Republicans in Congress. But that rare piece of policy concert doesn’t impress critics of the measure, who fault the SEC for not imposing restrictions on hedge fund advertising or putting into place strict verification procedures to ensure would-be investors are accredited.

Sen. Carl Levin (D-Mich.) complained that the rule as written—it includes no restrictions on solicitations and does not specify any rules regarding verification—”began undermining significant investor protections.”

READ MORE

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s