ICI Concerned About Lack of Investor Protections in SEC Rule Allowing Private Fund Advertising

Washington, DC, July 10, 2013 - Investment Company Institute President and CEO Paul Schott Stevens today issued the following statement in response to the Securities and Exchange Commission’s adoption of rules (mandated by the Jumpstart Our Business Startups Act) that will allow, for the first time, private funds to advertise to the general public. The final rule does not include investor protection measures recommended by ICI, consumer groups and many others; instead, the SEC put forward a proposal to consider whether investor protections should be added at a later date. Stevens said:

“Capital formation thrives in an environment where investors have confidence that they are appropriately protected. We are disappointed that the SEC has failed to adopt common-sense consumer protections that should have been a part of this rulemaking from the outset. The rule adopted today may satisfy the bare minimum for implementing this part of the JOBS Act, but much more needs to be done to fulfill the Commission’s broader mandate to protect investors and the markets. In that regard, we look forward to reviewing and commenting on the agency’s proposal for further rulemaking.”