MarketWatch – A commissioner on the Securities and Exchange Commission warned Thursday that allowing hedge funds to publicly advertise could lead to an increase in fraud.
At issue is a U.S. Securities and Exchange Commission proposal introduced in August to relax rules that have kept hedge funds, private-equity firms and small companies from soliciting to the general public for decades. The proposal is going through a comment period, but hedge-fund advertising is likely to be implemented in 2013.
