How Will the JOBS Act Impact Hedge Fund and Private Equity Marketing

Washington DC -- (SBWIRE) -- 07/02/2012 -- At its core, the JOBS Act included “Title II – Access to Capital for Job Creators.” This provision lifted an 80-year-old prohibition on general advertising by private equity funds and hedge funds. For financial marketers who once had to operate clandestinely, the JOBS Act adds more flexibility, opportunity, and freedom compared to the Securities Exchanges Commissions draconian policies.

Tripp Kyle, a partner at the public relations firm Brunswick Group, said, “I think it presents a real opportunity for firms to evolve their mind-set from what they can’t do to what they can and perhaps should be doing.”

What financial marketing guidelines are included in the JOBS Act?
The SEC has 90 days from the enactment of the law in April to provide guidance and clarity on which types of communications are permitted. The SEC originally had until July 4, 2012 to adopt final rules for the Act and has been soliciting public comments. However, on June 28, the SEC delayed its July 4 deadline to adopt final rules stating the final regulations are more complicated that they seem.

Will hedge funds and private equity be able to market themselves online?
Yes. We expect that the SEC will offer broader guidelines that will permit expanded and robust financial marketing tools for a wide variety options for communicating with the public. We expect disclosure laws to be explicitly required on websites and external pieces of communication (think saying ok to an online terms of use agreement) along with requirements to archive any publicly used materials.

Will hedge funds be able to advertise on television?
Yes. The JOBS Act will pave the way for hedge funds and other private fund raising efforts to advertise on television and billboards.

What is the Hedge Fund Association’s position on the legislation?
The Hedge Fund Association commented that this is "an action whose time has come” and they support the move to allow fundraising while encouraging proper oversight and self-regulation.

Will hedge fund websites and marketing materials need to be updated?
As we expect new disclosure requirements by the SEC, hedge fund websites and associated marketing collateral will need to be updated to stay compliant with the yet-to-be-determined SEC guidelines. More robust hedge fund websites will allow for additional information on funds and recommendations for specific types of investors.

What’s included in the JOBS Act for alternative investments?
Alternative investment firms will now be permitted to solicit investors from a wider audience and compete with traditional financial investments such as IRAs or Mutual Funds.

Will individual capital restrictions change with the JOBS Act?
No. Firms will still only be able to accept investments from individuals who have more that $1 million of money to invest.

TAGS: alternative investment marketing /hedge fund marketing /hedge fund website/ hedge fund website design /JOBS Act /JOBS Act SEC /PE website design /private equity marketing

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