FINRA asks for delay in implementing rule affecting non-traded REIT customer statements
FINRA seeks to delay the SEC’s implementation of a proposal regarding non-traded REITs so member firms have time to adjust properly. The rule aims for more clarity in the highly scrutinized non-traded REIT market. Often the prices of these illiquid REITs fail to show commission fees and distributions that return capital. Although distributions may sound good, when capital is returned the price of the asset declines. The REITs often trade at a static level of $10/share and fail to reflect change. The rule to fix this problem was supposed to be available in 3-6 months but may get pushed back.
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