I know that hedge funds are not allowed to advertise within the United States. However, my question is: if a Hedge fund is based offshore and has only offshore money, is it legal to advertise for this fund in foreign countries? I know that different countries will have different policies about this...but what about China? Japan?
Even if you list in the Caymans or BVI there are restrictions on who the fund can approach- depending on the type of fund. Of course, offshore jurisdictions don't normally go after fund managers with the same fervor as US authorities, but then again the USA has huge clout and if you are tarketing US investors the US regulators might pressure the local people to take action...?
wrt marketing, the jurisdiction that matters most is that of the investor, where he/she/it is domiciled, not so much that of the (offshore) fund family and friends aside, as long as your investors are professional / qualified investors, and your prospectus is waterproof, no sweat... but, abandon any thought of launching a retail fund... just go for listings in hedge fund databases, approach HNW investors directly etc...
"wrt marketing, the jurisdiction that matters most is that of the investor, where he/she/it is domiciled, not so much that of the (offshore) fund" thanks for the replies... 2cents, ok so where is it legal to market for the hedge fund then?...assuming you are targeting investors that are domiciled in places that allow it...are there such places...if so where?
If one has to ask that question on ET message board one is definitely not ready to launch a hedge fund of any type... SteveD
Thank you for the snide remark...always appreciated. However, I am not starting a fund...merely trying to find out more about how they work.
Australia has no regulations on who can invest in a hedgefund - you can invest with $20,000 of your $60,000 salary if you want. I'm not sure on their advertising regulations.
mate, if u read the 2nd part of my post carefully, you'll find my answer... i have no time to waste studying ever-changing restrictions applying to retail-type marketing... even less if u're not even setting up a fund... care to tell us why u're asking ppl for inputs here??