Forbes – Hedge funds, private equity companies and other firms can now advertise. While these firms will be allowed to advertise on television and through the Internet, they can still only provide their investment products to “accredited investors.” That means you have to have a net worth of US$1 million not including your primary residence or an annual individual income of US$200,000.
“The proposed rules, which are not yet final, are a double edged sword that increases flexibility for issuers to solicit purchasers through general solicitation, while imposing a more significant due diligence burden on issuers to verify that purchasers are accredited investors,” explains David S. Guin, Chairman of the Corporate and Securities Department at Withers Bergman LLP. While advertising might have drawbacks, there’s still strong interest among hedge funds.
