Marketing hedge funds to U.S. investors has long been shaped by the ban on “general solicitation” and “general advertising” contained in the private placement regulation commonly relied on by private funds. The Jumpstart Our Business Startups Act, or JOBS Act, enacted April 5, 2012, requires the SEC to modify its regulations to lift the ban. As the SEC goes ahead with its new regulations, the focus is on the “reasonable steps” hedge fund managers must take to ensure only accredited investors come into their funds.

Click here to read our column that appeared in HFMWeek discussing what the impact of these new regulations will be once the mechanics are worked out.