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SEC urges investment firms to document access to startup shares

Reported · Written up by our desk · Fund Industry

The Wall Street Journal reports that the SEC is pressing investment firms to demonstrate they truly have access to shares in so called hot startups.

The publication points to a case involving a fund that previously marketed exposure to SpaceX, but later told investors that the shares had already been sold before the company’s IPO.

WSJ Markets frames the SEC’s focus as an effort to tighten proof around how funds claim access to private market or pre IPO allocations, especially when marketing suggests ongoing exposure.

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