MFA submitted a comment letter to the SEC requesting that the Commission amend Rule 502(c) of Regulation D to eliminate the prohibition on offers or sales securities by general solicitation or general advertising with respect to private funds. In the letter, we explained that eliminating the prohibition would:
- reduce the legal uncertainty resulting from the current regulation of private fund offerings conducted in reliance on Regulation D;
- increase transparency of the hedge fund industry in a manner consistent with the Dodd-Frank Act and recent regulatory initiatives;
- facilitate capital formation and reduce administrative costs by allowing investors to more easily obtain information about private funds;
- maintain strong investor protections and ensure that only sophisticated investors are able to purchase interests in private funds; and
- reduce regulatory oversight costs and allow the SEC staff to reallocate resources to other aspects of investor protection, including products offered and sold to retail investors.