Chairman, Mary Jo White, of the US Securities and Exchange Commission is now proposing a rule that would allow hedge funds to advertise their services. This proposal, according to many consumer advocates, would allow many to take advantage of unsophisticated investors, according to two individuals familiar with the issue.

White, who assumed office just last April 10, has recommended to the commission to approve an existing plan as is and add the protections later, according to the sources who spoke on condition of anonymity, The proposal would make peace with congressional Republicans who have criticized the SEC for dragging its feet on the matter, which had a deadline then of July 2012.

By approving the proposal, White would be delivering on a promise she had made during her Senate confirmation hearings, specifically enforcement of the rules in the Jumpstart Our Business Startups Act. The law is designed to increase capital fund raising and promote job creation. 

On the other side of the aisle, the delivery on that promise would anger many consumer advocates for the protection of small investors as well as earn the ire of another fellow commssioner on the SEC.