Before It's News | Popular Money
Free Speech Trumps SEC Advertising Ban
Wednesday was finally the day that the Securities and Exchange Commission — one year and three months after it was instructed to do so by the bipartisan Jumpstart Our Business Startups (JOBS) Act signed by President Obama — lifted the ban on advertising and communication to and from hedge funds and the private equity and venture capital community. Lifting these archaic rules is a victory for entrepreneurs, all types of investors, and, most importantly, the First Amendment. The SEC’s decades-old ban on “general solicitation” by vehicles serving wealthy “accredited investors” was wrong at the time, but is positively archaic today in the face of instant communication through the Internet and social networks. It is also paternalistic and anti-egalitarian.
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