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Jan 15, 2013

Advertising Rules for Private Funds: A Post-JOBS Act Primer


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Shearman & Sterling partner Nathan Greene (New York-Investment Funds) wrote a two-part article, titled “Advertising Rules for Private Funds: A Post-JOBS Act Primer,” published in the November 2012 (Part 1) and December 2012 (Part 2) editions of The Investment Lawyer.

Part 1 of the article identifies and explains the principal sources of general antifraud regulation of fund manager advertising under the rules of the SEC (including the US Investment Advisers Act of 1940), the Financial Industry Regulatory Authority (FINRA), Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA). Part 2 of the article examines more detailed content requirements that each of these regulators apply, including rules that govern:

  • References to specific investment picks;
  • Investment performance (track record) information, including practices that draw greater scrutiny like backtested, model and hypothetical performance presentations;
  • Ownership and “portability” of track record information from prior funds or a prior employer;
  • Targeted investment returns;
  • Use of article reprints;
  • Advertising that refers to a firm’s ranking by a third-party organization or that names a firm’s clients; and
  • Social media.

View article, Advertising Rules for Private Funds: A Post-JOBS Act Primer

Authors and Contributors

Nathan Greene


Investment Funds

+1 212 848 4668

+1 212 848 4668

New York