•  
• Tweet
•  
•        Print
•  
•         Track Keywords
•  
• 

Komfie Manalo, Opalesque Asia:

The recent decision of the Commodities and Futures Trading Commission (CFTC) to ease long-standing marketing restrictions on so-called private offerings by hedge funds and other funds sold only to wealthy investors would not result to increased advertisements from hedge funds, said Howard Groedel, partner and chairman of the Securities Regulatory Compliance practice group at securities law firm Ulmer & Berne LLP.

Groedel commented, "The recent harmonization of CFTC and SEC rules permitting general solicitation and advertising, while a sensible step, is unlikely to herald in a significant increase in the number of hedge fund advertisements. Many of the hedge funds subject to CFTC regulation engage in specialized or esoteric trading strategies.

He added that the more critical issue for the managers of these funds is finding enough investments to make rather than raising more capital. Many of these funds are at full capacity and do not need to advertise in order to raise more capital.

But Groedel commented the CFTC’s move to align its regulation with similar rules set by the Securities and Exchange Commission on easing the hedge fund ad ban in line with the JOBS Act.

On late Tuesday, ......................

To view our full article Click here