{"id":38592,"date":"2013-10-11T12:39:38","date_gmt":"2013-10-11T16:39:38","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=38592"},"modified":"2013-10-11T12:46:46","modified_gmt":"2013-10-11T16:46:46","slug":"will-new-sec-rules-allowing-general-solicitation-by-hedge-funds-impact-florida-businesses","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/10\/2013\/will-new-sec-rules-allowing-general-solicitation-by-hedge-funds-impact-florida-businesses.html","title":{"rendered":"Will New SEC Rules Allowing General Solicitation By Hedge Funds Impact Florida Businesses"},"content":{"rendered":"

\"images\"<\/a>New York (HedgeCo.Net) – Miami Finance Forum and Bilzin Sumberg will be hosting and presenting a panel discussion<\/a> of certain implications and anticipated market developments resulting from the SEC\u2019s recent rule amendments allowing general solicitation of investors in private placement offerings.<\/p>\n

Since Obama’s Jumpstart Our Business Startups Act (JOBs Act), the ban on hedge fund advertising has been lifted. The JOBS Act became law in March 2012 and made the initial recommendation to allow “general solicitation” for private issuers, the law\u00a0was approved with bipartisan support in both houses of Congress.<\/p>\n

The\u00a0rule<\/a>\u00a0went into affect on September 23rd 2013 and so far only 8 hedge funds have filed for the\u00a0*<\/strong>506c exception:<\/p>\n

– Zeus Alpha LP
\n– Steben Select Multi-Strategy Partners, L.P.
\n– Force Select LTD
\n– Big\u00a0Tree Capital Opportunity Fund\u00a0I, L.P.
\n– Big\u00a0Tree Capital Emerging Markets Fund, L.P.
\n– Ogee Group LLC
\n– Steben Select Multi-Strategy Partners, L.P., and,
\n– Israel Investment Fund LP.<\/p>\n

“While hedge funds are finally allowed to advertise, we believe that funds will be cautious in adopting general solicitation.” Evan Rapoport, founder of industry portal\u00a0HedgeCo.net<\/a>, said.\u00a0“No one wants to be first and sign up to be the regulators’ guinea pig, but I do think that if you work with advertisers that have familiarity with securities regulations, the early adopters have a large opportunity to launch successful campaigns.”<\/p>\n

He went on to say: “We believe the first funds to take advantage of the JOBS act will more than likely be some of the largest funds in existence.\u00a0 It is the larger investment companies that can afford the upfront costs associated with rolling out a successful advertising and branding campaign.”<\/p>\n

*<\/strong>Rule 506 of Regulation D is considered a “safe harbor” for the private offering exemption of Section 4(2) of the Securities Act. Companies using the Rule 506 exemption can raise an unlimited amount of money. A company can be assured it is within the Section 4(2) exemption by satisfying the following standards:<\/p>\n