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Service providers lick chops while investor advocates cringe at JOBS Act

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The SEC's decision to lift the ban on hedge fund marketing has received mixed reviews.

   
   Carl Levin (Photo: Bloomberg)
Hedge funds are finally allowed to advertise freely, and the companies that serve them--especially public relations and law firms--are mostly thrilled, while others fear a proliferation of fraudsters. 

Many trumpeted their excitement following the Securities and Exchange Commission's adoption of a new rule yesterday to implement a JOBS Act requirement to lift the ban on general solicitation and advertising for private funds. 

Hedge fund lobbyists were also positive about the decision, but more cautious in their pronouncements. Investor advocates and some politicians were upset. And managers themselves? Largely mum. As Absolute