A ban that has stood for 80 years will be lifted this summer, allowing hedge funds to advertise. How, where, and what form the ads will be allowed to take are among the details still to be finalized, which means the new rules won’t be ready by the July 4th deadline set by Congress.
However, Securities and Exchange Commission Chairman Mary Schapiro said she expects approval later this summer. The biggest hurdle the commission faces in adopting the rules is ensuring that potential investors who respond to the ads are properly vetted. (Alternative asset investors have to meet minimum net worth requirements and be accredited before funds can accept their investment.)