A new rule adopted by the Securities and Exchange Commission (SEC) Wednesday, eliminates an 80-year restriction which didn’t allow hedge funds to publicly advertise.
The rule will also allow start-up businesses to raise funds more easily by not having to comply with SEC disclosure rules. Additionally, the SEC passed another rule that bans felons, and other troublemakers from involvement in private offerings , reports USA Today.
“We want this new market, and the private markets in general, to thrive in a safe and efficient manner, and the rules we adopt and propose today are designed to facilitate that objective,” Mary Jo White, SEC Chairman, told USA Today.
These new rules don’t necessarily mean that hedge fund ads will start appearing everywhere. Forbes believes that hedge funds will likely start out slow, and that the changes will have some hedge funds start looking in marketing strategies for the first time.