Fund Democracy and CFA Urge SEC to Adopt Hedge Fund Performance Standards Before Permitting Expanded Marketing
The Consumer Federation of America and Fund Democracy comment on the Commission’s proposed amendment to Rule 506 under the Securities Act to permit general solicitation and advertising (“GS&A”) in connection with private offerings. The purpose of this letter is to highlight recent research that demonstrates the high costs that unregulated GS&A by hedge funds will impose on America’s investors and financial markets.
