Avoiding the SEC's own sales targets

John Mollloy of Edwards Angell Palmer & Dodge discusses the ins and outs of marketing in light of recent SEC rulings

The SEC recently proposed a new antifraud rule, Rule 206(4)-8, prohibiting fraudulent or materially misleading statements made to, or other fraud on, investors and prospective investors in hedge funds.1

It is difficult to imagine that, 67 years after the passage of the Investment Advisers Act, the SEC believes it would need a rule specifically to address that type of illegal behavior by hedge fund advisers, particularly as the SEC has successfully brought actions against advisers for the same

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