JOBS Act Marketing Update: CFTC Relief Removes Impediment to General Solicitation

On 9 Sept. 2014, the U.S. Commodity Futures Trading Commission (CFTC) staff granted broad relief intended to remove an obstacle to the ability of market participants, under rules previously promulgated by the U.S. Securities and Exchange Commission, to utilize general solicitation and general advertising in conducting placements of hedge fund and private equity fund interests (and other securities). In this article, SRZ partner Marc E. Elovitz and former Schulte lawyers Brian Daly, Brad L. Caswell and Jacob Preiserowicz discuss the CFTC relief, which has certain conditions and does not represent a resolution of all of the questions and concerns surrounding the use of general solicitation and general advertising.