Attention hedge funds, private equity funds,
venture capital funds, and other private funds (collectively,
"private funds"). On September 9, 2014 ,
the CFTC Division of Swap Dealer and Intermediary Oversight
("DSIO") issued CFTC Letter 14-116 providing exemptive
relief (for some funds) from the general solicitation restrictions
in CFTC Rule 4.7 and CFTC Rule 4.13(a)(3) to harmonize the CFTC
rules with the SEC rule changes arising from the Jumpstart Our
Business Startups Act (the "JOBS Act").
CFTC Letter 14-116 is available here.
Until now, many private funds have been unable to take advantage
of provisions in the JOBS Act permitting general solicitation
investors due to restrictions in CFTC Rule 4.7 and CFTC Rule
4.13(a)(3). Those readers familiar with the JOBS Act and CFTC Rule
4.13(a)(3) and CFTC Rule 4.7 can skip the next three paragraphs and
move straight to the exemptive relief.
