SEC Adopts New Antifraud Rule For Investment

Law360, New York (August 13, 2007, 12:00 AM EDT) -- On July 11, 2007, the Securities and Exchange Commission (SEC) unanimously adopted a measure designed to curb fraudulent conduct by investment advisers with respect to “pooled investment vehicles” including hedge funds, private equity funds and venture capital funds. SEC Press Release 2007-133 (July 11, 2007).

On Aug. 3, 2007, the SEC published its final release adopting under the Investment Advisers Act of 1940. Investment Adviser Act Release No. 2628 (August 3, 2007). The rule prohibits investment advisers from (1) making false or misleading statements to prospective...
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