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Ad ban lift a mixed blessing for private equity firms

News Analysis: private equity firms are to be allowed to advertise their funds in the US, but will the risks and complexities deter them?

The US Securities and Exchange Commission is set to lift an 80-year-old ban on private equity firms soliciting shares in private placements, but will the risks and complexities deter them?

Last week the SEC announced plans to lift a restriction prohibiting companies from publicising shares in private offerings. The ban was put in place to protect smaller investors from being mis-sold shares, but lobby groups claimed the restrictions made it difficult for businesses to raise private capital.

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