NEW YORK – (Business Wire) – The Hedge Fund Association, an international organization that represents hedge funds, service providers and investors, said liberalized advertising and solicitations rules contained in the new Jumpstart Our Business Startups (JOBS) Act would help hedge funds raise assets and “encourage emerging managers to continue to enter the industry.” The HFA also asked the SEC for clearer rules to verify that potential investors are indeed accredited as a way to “add further stability to the industry.”
The HFA’s position was outlined in a comment letter submitted to the Securities and Exchange Commission on June 6, 2012. The SEC is soliciting comments before implementing regulations, scheduled to be published July 5, 2012, which are expected to allow hedge fund management companies to communicate directly with potential investors for the first time in their history. Hedge funds would still be restricted to selling their securities to accredited investors such as individuals with a minimum $1 million net worth and qualified institutional investors.