Bulldog Sues SEC
Phil Goldstein of the Hedge Fund, Bulldog Investors is suing the Securities Exchange Commission (SEC) for its ban on hedge fund marketing and advertising.
Phil Goldstein told the Financial Times: "We want to be able to have a website like any other business. The only websites required to pre-qualify people are hedge funds and pornography . . . gun shops are allowed to advertise, the Massachusetts state lottery is allowed to have a website. We want to be treated like any other business." "We are not asking regulators to be allowed to sell to unqualified investors. We are simply saying that they are not going to be harmed by getting the information," Mr. Goldstein said about his plan to make fund web sites available to all.
"We have three options and suing the U.S. Securities and Exchange Commission is the best course," Mr. Goldstein told Reuters on Monday. "The other options are doing nothing or opening up access and possibly being punished."
"The current rule is difficult to work with," said David Nissenbaum, a partner at law firm Schulte Roth & Zabel LLP, acknowledging that because it gives lawyers little guidance, they usually advise clients to say as little as possible. "It would be a good thing if there were more information and access should not have to be limited."
What is news to me is that according to the Financial Times, in 2003 the "SEC staff" recommended that the ban on hedge fund advertising be lifted, but no actions were taken to do so.
I hope the ban is lifted but the ironic thing about this move is that it is in itself indirect advertising. How could you not increase the exposure of the general public to your fund after filing a lawsuit against the SEC on this very issue?
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Permanent Link: Hedge Fund BullDog Fund Sues SEC
Original Article Found on the FT through my friends at the Albourne Village
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