Bruce Karpati, chief of theSecurities and Exchange Commission’s enforcement division's asset management unit, has afew choice wordsfor hedge funds looking to get into the mutual fund space.

Karpati, speaking before theRegulatory Compliance Association, an operations and compliance advocacy group, last month said that the retailization of hedge funds has made it easier for unsophisticated investors to invest directly in hedge funds. “Looking ahead, the elimination of the prohibition on general solicitation and general advertising as a result of the JOBS Act could have an immediate impact because, what were formerly private offerings, can now in some form be broadcast to a much wider audience,” he said.

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