New York (HedgeCo.net) – The Investment Adviser Law Blog reports that the SEC may miss the deadline to adopt rules that would lift the ban on advertising and general solicitation by hedge funds and other private pooled investment vehicles, according to anticipated testimony by SEC Chairman Mary Schapiro.
“The JOBS Act directed the SEC to adopt rules within 90 days from enactment–July 5. Schapiro indicated 90 days was not a reasonable timeframe. Given the SEC’s pace of rulemaking under Dodd-Frank mandates and previous comments from SEC commissioners, Schapiro’s remarks are not surprising.”
“According to Schapiro, the SEC should “be in a position to act on a staff proposal in the very near future.” No word yet on what that proposal will look like or whether it will impose other requirements on private fund issuers who want to advertise in connection with their offerings. Comments submitted to the SEC have suggested that new rules should raise the threshold for accredited investor qualifications, require copies of advertising to be filed with the SEC, or prohibit performance claims in advertising materials.”
“I expect that in the next two days we will publish time line for lifting the general solicitation ban and it will be done this summer,” SEC chief Mary Schapiro told lawmakers in a House Oversight Committee.