Fiduciary Links: FINRA Provides Notice to Stop Misleading Investors on REITs
Posted by fi360 Team on May 06, 2013
>>>>FINRA has released guidance to member firms regarding how they should be communicating to investors regarding REITs and real estate direct participation programs. The memo addresses eight areas in which firms have shown deficiencies when communicating about the products: dislcosures, distribution rates, stability/volatility claims, redemption features and liquidity events, performance of prior related real estate programs, use of indices and comparisons, pictures of specific properties, and capitalization rates. In each section, the notice provides guidance for how these aspects should be communicated in a way that does not mislead investors. In addition to the specific guidance regarding REITs, the notice is worthwhile reading for the insight it provides into how FINRA expects communications to accurately reflect an investment program.
Media coverage: [InvestmentNews] [Wall Street Journal]
>>>>On a lighter note: While the debate over the virtues of passive versus active management typically centers around considerations of performance expectations, cost, investor time horizon, risk, etc., apparently we also need to start taking patriotism into account when choosing which path is right for you.
Now on to the rest of the best links from last week:
News and columns from the leading trade, consumer, and mainstream media:
- Consumer Federation of America, Americans for Financial Reform and AFL-CIO to SEC: don't leave investor protection behind in Reg D rulemaking [InvestmentNews]
- SEC's White plays money market reform close to the vest. [InvestmentNews]
- Sallie Krawcheck says advisors generally ignorant when it comes to women investors [AdvisorOne]
- How does a planner's brain react to change? Judith Glaser tells the tale at the FPA Retreat last week. [AdvisorOne]
From the organizations/associations/government/academia:
- NAPFA and Credit.com collaborate to educate the public on pressing personal finance issues [NAPFA]
- Carlo di Florio named FINRA's new Executive Vice President, Risk and Strategy [FINRA]
- Johnathan S. Sokobin named FINRA's Chief Economist [FINRA]
- The SEC names Andrew Bowdenn as Director of National Exam Program [SEC]
- The SEC offered an investor alert regarding private oil and gas offerings. [SEC]
From the blogs:
- Five questions for advisers considering going independent as a growth strategy [The Advisor Center Blog via InvestmentNews]
- CEFEX-certified firm Richardson GMP recently signed a de facto non-aggression and partnering pack with Dynasty Financial. [RIABiz]
- Trending topics for ERISA plan sponsors [FiduciaryNews]
- Top 10 wealth managment posts in April 2013 [InvestmentFiduciary]
Articles your clients are reading (or should be):
- The SEC is warning investors to be wary of private security offerings in the gas and oil industry [SEC]
- Three powerful ways to reduce your 401(k) fees [USNews]
- Seven reasons to downsize after retirement [USNews]
- Why you need more bonds as you get older [USNews]
- Friday finance links - DOW 15,000 edition [theChicagoFinancialPlanner]
- Have a link we missed? Leave them in the comments section or email us at blog@fi360.com. For more of the best links during the week, make sure you follow us on Twitter.
