FINRA has proposed a rule change that would give investors a more accurate picture of the costs of buying non-traded real estate investment trusts. If approved, the new rule would eliminate broker-dealers’ practice of listing REIT share values at $10 per share. Instead, FINRA’s proposed rule change would require pricing to incorporate the various fees and commissions that would be paid. The new rule would give investors a more accurate picture of how much of their money actually was used to purchase shares. The net effect would be that reduced share values.

The non-traded REIT industry, which saw $20 billion in sales in 2013, likely would see decreased sales if investors were provided with the more accurate information about share values. Many brokerage firms, especially smaller independent firm, generate a large percentage of their revenue by selling non-traded REITs.

EN   ES   PT     

Miami Office
Grand Bay Plaza
2665 S. Bayshore Drive
Penthouse 2B
Miami, FL 33133
Telephone: 786.628.8236

Los Angeles Office
Available by Appointment
2029 Century Park East
Century Plaza Tower
Suite 400N
Los Angeles, CA 90067
Telephone: 424.544.7930

New York City Office
Available by Appointment
14 Wall St, 20th Floor
New York, NY 10005
Telephone: 917.382.5217

West Palm Beach Office
Northbridge Centre
515 N. Flagler Drive, Suite P-300
West Palm Beach, FL 33401
Telephone: 561.475.2887

Detroit Office
41000 Woodward Avenue,
Suite 350 East
Bloomfield Hills, Mi 48304
Telephone: 248.368.0182