According to Bloomberg Congress probably didn’t mean to turn
the $2.3 trillion hedge-fund industry into a breeding ground for fraud when it
passed a law designed to make it easier for small companies to raise capital.
That may well be the result unless the Securities and Exchange Commission steps
in with new rules.
Congress passed the Jumpstart Our Business Startups (JOBS)
Act with bipartisan support, and President Barack Obama signed it into law in
April. Among its provisions, this misguided piece of legislation allows
so-called private placements and hedge funds, lightly regulated private
investment pools that serve the wealthy and institutions, to advertise their
wares to the public for the first time.
Not only is this a bad idea, it is unnecessary…..
Wait, wait…there’s more at http://www.bloomberg.com/news/2012-12-04/hedge-fund-ads-might-spawn-frauds-unless-sec-takes-action.html
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