Ark. Watchdog Tells SEC To Retool Investment Ads Rule

Law360, New York (October 10, 2012, 4:18 PM EDT) -- Arkansas' top securities official on Wednesday urged the U.S. Securities and Exchange Commission to withdraw its proposed rule lifting advertising restrictions on hedge funds, private equity firms and other investment companies, saying the rule doesn't offer adequate investor protections.

Arkansas Securities Commissioner Heath Abshure said in a teleconference held by the Consumer Federation of America that the rule allowing investment companies to advertise the sale of unregistered Rule 506 securities offerings — mandated by the Jumpstart Our Business Startups Act — will leave investors vulnerable to...
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