SEC Democrat Signals Quick Action On Advertising Rule

May 21 2013 | 1:58pm ET

Former Securities and Exchange Commission Interim Chairman Elisse Walter has changed her tune—to a degree—on hedge fund advertising.

A month after citing the large number of comment letters the agency received on a proposal to end the 80-year-old ban and warning that the new rule will force the SEC to expend more energy guarding against fraud, Walter said she supported allowing hedge funds to advertise, as is required by last year's JOBS Act. And, while Walter said she still hoped to see investor protections added to the proposal, she said she was open to addressing those concerns separately, after the new rule is passed.

New SEC Chairman Mary Jo White has made ending the ban one of her top priorities, and faces pressure to expedite the process from both the agency's two Republican commissioners and from Congressional Republicans, who are furious that the SEC failed to act before the July 2012 deadline set by the law. Former SEC Chairman Mary Schapiro was reportedly set to push through a narrow rule allowing hedge fund advertising in August. But, according to published reports, she backtracked when criticized by consumer groups, who are concerned that allowing hedge funds to advertise without specifying investor protections would lead to an increase in fraud.

White reportedly wishes to push through the current rule, which includes no investor protections, without major changes, and to add protections later.

And while Walter now appears to be on board with that strategy, she is not happy about how the rule was written.

"We have a proposal out there, and it's a very shockingly stark proposal, how streamlined it was and how few questions it asked," Walter said after a Financial Industry Regulatory Authority conference yesterday.


In Depth

JOBS Act Propels Real-Estate Crowdfunding Platform

Oct 21 2014 | 2:57am ET

If D.J. Paul were a real estate development, he would be described as “multi-use...

Lifestyle

Strippers Accused Of Robbing Hedge-Fund Manager Face Jail

Oct 20 2014 | 9:20am ET

A group of alleged stripper-thieves—whose victims include a hedge-fund manager...

Guest Contributor

PAAMCO: European Equity Exposure - Challenging Year, But All is Not Lost

Oct 16 2014 | 4:12am ET

European equity hedge fund managers have had a tough time so far this year. The...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.