What Happens When Financial Rule Changes and Social Media Come Together?
Wealth management and financial planning does not have to be dry and humorless. In fact, social media is adding a dimension to the financial world that is full of witty and sharp commentary from all points of view.
On Wednesday, July 10, 2013 the Securities and Exchange Commission (SEC) voted 4-1 to remove a 1930’s era rule banning hedge funds and private equity firms from advertising. Hedge funds are still limited by rules requiring they sell only to the wealthy (defined as over $1 million net worth- excluding residence- or family income over $300,000). The typical charge by hedge funds to this exclusive group of clients is pretty steep, being 2% of the assets managed and 20% of the profits.
Within hours Twitter lit up with tongue-in-cheek commentary on new advertising slogans for the high-priced hedge fund world, all “trending” under the symbol #hedgefundslogans. Below is a sample of these creative and humorous comments (accompanied by the author’s Twitter name). There were dozens of other comments and you might want to do your own search.
@ritholtz “Because trophy wives are expensive”
@Biotechboy “We put the FUN in hedge fund!”
@RobBartenstein “I don’t always pay for underperformance, but when I do, I pay 2 and 20.”
There are a variety of other Twitter #hashtags with interesting and insightful commentary where matters financial and legislative come together including #fiduciary, #ERISA, and #RIAs. Enjoy this democratic and wide-ranging source of information.
Authored by: T. Taylor Payne, CPA/PFS, CFP(r)
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