SEC Bans Unlicensed Placement Agent from the Industry

This is a very important development for the alternative asset industry.  Historically many have viewed placement activity for private investment funds as a “grey” area of regulation.  This action by the SEC should be viewed as a lightning rod for our industry to clarify that raising capital for alternative asset funds for a commission requires appropriate licensing with a registered broker-dealer.  Over the past 3 years, there has been an increasing amount of new regulation and attention by state and federal regulators relating to solicitation activities of hedge funds, private equity and real estate funds.  It now seems that this issue has been clarified for the industry.  Please contact us if you have any questions relating to this issue.

http://www.sec.gov/litigation/admin/2012/34-67532.pdf