SEC lifts ad ban for hedge funds
For the first time, hedge funds will be allowed to advertise to the general public under a rule adopted Wednesday by federal regulators.
The Securities and Exchange Commission voted, 4-1, to lift a decades-old ban that prevents hedge funds, private equity firms and other private investment managers from marketing their products to a wide audience.
Hedge funds are still allowed to sell securities only to an exclusive group of investors — those with a net worth of at least $1 million excluding their primary residence, or annual income of more than $200,000 in each of the two most recent years. About 7.4 percent of U.S. households have a net worth of $1 million or more.
Hedge funds are investment pools that use complex trades to seek big returns. They command trillions of dollars in assets. The ban on general advertising has been in effect since 1933.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Pennsylvania Game Commission reaps revenue from shale gas under game lands
- University of Pittsburgh researchers revisit war of electric currents
- As historic breakup nears, Alcoa works to redefine its ‘advantage’
- Energy Spotlight: Minking Chyu
- Covestro leader MacCleary finds stability amid change
- Older workers try to cut back on hours at job
- Program lets public service workers be forgiven for student debt
- Union leaders warn Post-Gazette newsroom of possible layoffs
- Stocks close quiet week with little change
- Paying pals digitally catches on
- Black Friday chaos dwindles thanks to earlier deals, online sales