Impact Of JOBS Act On 3rd-Party Marketers

Law360, New York (April 3, 2013, 12:40 PM EDT) -- The JOBS Act (Jumpstart Our Business Startups Act) that was enacted on April 5, 2012, will likely change the business of third-party marketers by expanding the scope of permitted promotional activities in connection with offering investments in hedge and private equity funds.

Changes to Private Placement Offerings

Investment fund capital raises are typically private placements that rely on the safe-harbor exemption from the registration requirements of the Securities Act of 1933 provided under Regulation D, specifically Rule 506. This exemption has several requirements, most notably: (i)...
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