Hedge funds would be allowed to advertise to the general public under a proposal put forth Wednesday.

The Securities and Exchange Commission voted 4-1 to seek public comment on the proposal, which would formally lift a ban on hedge funds marketing their investments to a wide audience. The public has 30 days to comment, after which the SEC will likely take a final vote.

Hedge funds still would be required to sell securities only to investors with a net worth of at least $1 million excluding their primary residence.

The change is called for by legislation enacted in March. The law also makes it easier for small startup companies to raise capital without having to comply immediately with a range of SEC reporting rules.