Mon, May 25, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

JOBS Act passes both houses, ends prohibition on general solicitation

Wednesday, April 04, 2012

Bailey McCann, Opalesque New York: Both houses of Congress have passed the Jumpstart Our Business Startups Act (JOBS Act), a new piece of legislation which will eliminate the prohibition of general solicitation by private funds. The bill, HR 3606, is expected to be signed into law by President Obama as early as this week.

"Private funds," is an umbrella term used to describe a variety of investment vehicles including hedge funds, private equity funds and fund of funds. All of these vehicles have been prohibited from most advertising and solicitation activities under Rule 506 of the Securities Act of 1933. Under the provisions of the JOBS Act, the Securities and Exchange Commission (SEC) would be required to amend these rules to reflect new allowances created through the JOBS Act.

Before the JOBS Act, private funds refrained from general advertising and solicitation or else they would have to register with the SEC or meet an exemption. Through the new rules, private funds will now be able to engage in advertising. According to a client alert from US-based law firm Sadis & Goldberg, obtained by Opalesque, "the JOBS Act provides that transactions conducted pursuant to Rule 506, 'shall not be deemed public offerings under the Federal securities laws as a result of general advertising or general solicitation.’"

Further, the JOBS Act requires that the SEC no later tha......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Comment - Top hedge fund managers talk about how easy their jobs have gotten, BlackRock to Schroders warn of Argentina’s $20bn bond glut, The 35-year “investment supercycle” is drawing to a close, says Bill Gross, Gundlach: When the Fed starts hiking rates, 'GET OUT' of this asset class[more]

    Top hedge fund managers talk about how easy their jobs have gotten From Businessinsider.com.au: Time was, before the financial crisis hit, corporate boards treated multi-billion dollar hedge fund managers like Jehovah’s Witnesses pounding on their doors and flashing bibles. But no more.

  2. T Rowe's challenge to Dell deal may fuel critics of 'appraisal'[more]

    From Reuters.com: An increasingly popular tactic used by hedge funds and others to extract more money from buyouts could soon face a major courtroom test when a big investor in Dell Inc may argue that it should be paid a higher price for the 2013 acquisition of the PC maker. The strategy, known as "

  3. News Briefs - Ergen says LightSquared plan unfairly favors hedge funds, Why hedge fund managers make good advisory clients, I learned a lot about dad-bros after spending 4 days in Vegas with 2,000 hedge funders[more]

    Ergen says LightSquared plan unfairly favors hedge funds LightSquared Inc.’s bankruptcy plan gives hedge funds that invested in the broadband company a leg up while blocking telecommunications firms from competing with it, a fund owned by Dish Network Corp. Chairman Charles Ergen said in

  4. Opalesque Exclusive: SEC approves proposed changes to Form ADV, '40 Act - comment period to follow[more]

    Bailey McCann, Opalesque New York: Hedge funds and providers of liquid alternatives will want to pay close attention to proposed reforms approved by the SEC yesterday. The changes will require more frequent reporting, as well as a closer look into social media, liquid alternative strategies, and

  5. New market regime has created more dispersion between managers[more]

    Komfie Manalo, Opalesque Asia: The month of April has marked the transition toward a new market regime, Philippe Ferreira, Lyxor AM’s head of research, managed account platform, commented in the May 5's Weekly Briefing. "The first quart

 

banner