Steven B. Nadel Benedicte Gravrand, Opalesque Geneva:
In July 2013, the U.S. Securities and Exchange Commission adopted final rules in connection with the Jumpstart Our Business Startups (JOBS) Act, lifting an 80-year old ban on general solicitation and advertising and allowing hedge fund managers, among others, to emerge from their secretive world.
The JOBS Act had been signed into law more than a year ago. It directed the SEC to eliminate the prohibition against general solicitation or general advertising in any offering of securities pursuant to Rule 506 under the Securities Act for all purposes of the "federal securities laws," provided certain conditions are met.
Steven Nadel, New York-based partner in the Investment Management practice of law firm Seward & Kissel, commented then that the new rules might take some time to pick up momentum.
"There will only be a handful of pioneer-types at first who will look to dip their toes into the advertising waters. As with anything new of this magnitude, many managers will probably adopt a wait and see approach," he noted.
Six months later, we have yet to see much advertising from the hedge fund community. Granted, there have been a few announcements on social media s......................
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