by Beth Connolly on June 1, 2012
Under the JOBS Act legislation, hedge funds will be allowed to advertise their services to the public. And mutual funds just don’t like that. Their advertising has been constrained and heavily policed by regulators, but hedge funds’ advertising will not be subject to similar regulations.
Now, mutual funds are complaining to the SEC that hedge funds’ advertising should be as heavily regulated as mutual funds’ advertising. Hedge funds point out that the major difference between the two is that hedge funds’ investors have to be “accredited investors,” meaning that they are wealthy enough to afford to invest.
Mutual Funds Push To Restrict Hedge Fund Ads [Wall Street Journal]
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