Bailey McCann, Opalesque New York: This year, the US Congress passed the Jumpstart Our Business Startups (JOBS) Act, which directed the Securities and Exchange Commission (SEC) to change a previous rule that prohibited hedge funds from advertising. Since then the SEC has been working through a rulemaking process, which is now open to public comment from industry professionals, in order to finalize new more open rules about how hedge funds can speak about their products.
Richard Dukas, President and CEO of Dukas Public Relations recently sent in a comment letter to the SEC about what these rules may mean for hedge funds.
in the letter, he notes that if hedge fund managers are able to more freely communicate with the public and the media, it may lead to a better understanding of the industry, along with an ability for managers to correct the record if misinformation is published. Dukas PR represents a variety of hedge fund clients, but Richard notes that a significant number of managers have opted to forgo a public relations staffer and indeed most public communication out of fear of getting questioned by regulators.
"I think advertising is the wrong word to use when discussing these rules. Managers hear prohibition on advertising and they think its a prohibition on all public communications and ......................
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