President Obama's Jumpstart Our Business Startups (JOBS) Act will change the hedge fund industry by allowing advisors to private funds to advertise their services.
According to Kinetic Partners, a global professional services firm to asset management, investment banking and brokerage companies, the JOBS Act amends the text of Rule 506 on private placements and forces the U.S. Securities & Exchange Commission to lift the ban on general solicitation and advertising on hedge funds.
Although the SEC has been told to lift the ban, it can impose limitations on how the private placements are conducted. General solicitation and advertising are allowed only if all the investors are accredited and funds will no longer be able to have up to 35 unaccredited investors. However, a fund may be able to still have 35 unaccredited investors if it does not engage in general solicitation or advertising.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
