Hedge funds are now allowed to advertise to the general public.
Fortune reported that the Securities and Exchange Commission voted 4-1 Wednesday to approve the passage of the JOBS Act, lifting the 80-year general solicitation ban enforced on hedge funds and other private funds. That would mean giving the green light to online, print and TV from the private funds sector.
Investors will still need to be accredited before making a hedge fund investment. The SEC is mandating that funds would be required to take “reasonable steps,” such as receipt of tax returns or bank account statements to verify investor accreditation.
The SEC had continually delayed passing the JOBS Act since it missed its initial July 4 deadline last year.