Thursday, 11 February 2016
Last updated 15 min ago
Jun 29 2012 | 12:24pm ET
An 80-year-old ban on hedge fund advertising will finally be lifted this summer, U.S. Securities and Exchange Commission Chairman Mary Schapiro said yesterday.
Testifying before a House of Representatives oversight committee, Schapiro said that the new rule—mandated by April's JOBS Act—will not be ready by the 90-day deadline set out in the law. But she said she expects the commission to issue the rule this summer, which will allow hedge funds and other private funds to advertise to the general public.
"It's a bit more challenging a rule-making than it might seem on the surface," Schapiro said, noting that the JOBS Act requires the SEC to require private funds—which will still be available only to the wealthy—to take reasonable steps to ensure that investors are, in fact, accredited.