Hedge Fund Ads: Coming Soon to a Newspaper Near You

Hedge funds are one step closer to officially being permitted to advertise to the general public. The burning question, though, is whether that’s cause for celebration or trepidation.

Reported by Rob Silverblatt, US News, the Securities and Exchange Commission has recently put forth proposed rules that, if approved, would govern hedge fund advertising. The rules are a direct response to the JOBS Act, which contained a provision requiring that hedge funds, along with various other types of private offerings, be allowed to market their products to all types of investors.

Prior to the JOBS Act, hedge funds that took advantage of certain SEC registration exemptions were banned from engaging in general solicitations. But because of the bill, the question in front of the SEC is not whether such hedge funds will be allowed to undertake such advertisements. Rather, it is how to best regulate the advertisements once they are allowed.



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