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 \u201caccredited investors.\u201d 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.<\/p>\n
\u201cThe proposed rules, which are not yet final, are a double edged sword that\u00a0increases flexibility for issuers\u00a0to solicit purchasers through general solicitation, while imposing\u00a0a more significant due diligence burden on issuers to verify that purchasers are\u00a0accredited investors,\u201d\u00a0explains David S. Guin, Chairman of the Corporate and Securities Department at\u00a0Withers Bergman\u00a0LLP. While advertising might have drawbacks, there\u2019s still strong interest among hedge funds.<\/p>\n