The North American Securities Administrators Association (NASAA) and several prominent consumer groups called on the Securities and Exchange Commission Tuesday to withdraw its proposed rule relaxing the ban on general solicitation and advertising by private equity and hedge funds and go back to the drawing board. “This is a drastic, drastic change in face of securities regulation. There is a greater risk of fraud and abuse. Investors will flee from the market,” said NASAA President Heath Abshure, who said it represents a huge shift in the traditional oversight of private offerings versus public offerings. Abshure, who also serves as Arkansas Securities Commissioner, and representatives of AARP, the AFL-CIO, Americans for Financial Reform, and the Consumer Federation of America joined together in a press conference promoting two major changes in the details of the SEC rules which were mandated in general by the JOBS Act.Specific instructions on advertising. Without limits and guidance,
↧
