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Jobs Bill Opens Door to Hedgie Advertising
As mentioned in: Wall Street JournalMarch 28, 2012
The Wall Street Journal's Deal Journal reported that the JOBS Act contains a provision that would lift the ban on the marketing of private funds, potentially giving hedge funds and private-equity funds greater freedom in marketing their offerings to the public. Prior to the act, funds were only allowed to market to a small group of investors with whom they have “substantive” relationships.
The ban against marketing to the general public by private funds dates back to a rule in the Securities Act of 1933. Deciphering the boundaries of the ban has become increasingly difficult with the rise of the Internet and social media, which make available widely information about hedge funds, says Jay Gould, head of Pillsbury's investment-funds practice in San Francisco. Hedge-fund managers frequently grapple with whether any public statements, or even a company website, open them up to regulatory action.
