Thursday, 31 July 2014
Last updated 16 hours ago
Sep 24 2013 | 2:05pm ET
The ban on hedge fund advertising was lifted this week and the world's largest asset manager was glad to see it go.
The JOBS Act, which took effect on Monday, ended the almost 80-year-old ban on general solicitation for private securities offerings and Barbara Novick, vice chairman of BlackRock, which manages $3.86 trillion (including $113 billion in alternative investment assets), said her firm thinks that's “great.”
“Sunshine is a great disinfectant,” Novick told the FINforums Annual Hedge Fund Summit last week in New York.
BlackRock has issues with some of the regulations that are still being worked out, said Novick, who believes it's necessary to look at all the various rules “holistically” to see where there is overlap or duplication. But in lifting the advertising ban, she said, the SEC has proved that financial regulatory reform doesn't have to be “bad or somehow cumbersome."
That said, hedge fund investors must still be accredited, so don't expect managers to go mainstream with their advertising any time soon:
"You are not going to see hedge funds advertising at the Super Bowl,” said Novick, "because you aren't going to spend that kind of money to bring in [unqualified] investors that you will then have to turn away."
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…