NASD Issues Warning on Hedge Fund Sales

The NASD, formerly known as the National Assn. of Securities Dealers, warned its members that hedge funds must not be sold to average investors even as demand surges for these loosely regulated funds.

NASD, the securities industry’s self-regulatory agency, said it is concerned that brokerage firms might be putting investors into potentially risky funds without telling them that hedge funds can quickly make or lose a lot of money.