September 30, 2011 Comments (0) Blog, Securities Fraud

FINRA Proposes More Changes to Protect Investors in Non-traded REITs

According to the, FINRA has “…proposed changes to its Rule 2340, which governs customer account statements. Finra’s new proposal takes aim at brokers’ commissions and other upfront costs.” This change to Rule 2340 would seriously impact how the price of a nontraded REIT is listed on a customer account statement by making clear the commissions and costs involved in buying the product. said that it “…means that the customer of a broker who buys a nontraded REIT for par, typically $10 a unit, would receive an initial account statement, minus the broker’s commissions and other expenses. In such instances, those nontraded REITs would be valued at $8.70 a unit.” Currently the price would be listed at a par value of $10 until valuation of the REIT is complete.

The White Law Group recently blogged that FINRA was also preparing to make changes to regulations surrounding the valuation of Non-traded REITs. These changes would reportedly significantly reduce the amount of time Non-traded REITs can continue to be listed at par value (purchasing price). As the regulations stand today, non traded REITs can remain listed at par value as opposed to market value for up to several years. This delay can leave investors in the dark as to the value and performance of their investment.

Both of these possible rule changes seem to be an attempt by FINRA to protect investors from non-traded REITs which the regulatory body has been monitoring closely over the last year.

The White Law Group is currently representing many investors in claims involving non-traded REITs and will continue to carefully monitor this situation as FINRA moves forward with these regulation proposals.

If you have invested in a non-traded REIT and are concerned about your investment please call the securities attorneys of The White Law Group at our Chicago office at 312/238-9650.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group, please visit our website at

0 Responses to FINRA Proposes More Changes to Protect Investors in Non-traded REITs

  1. […] White Law Group has been following FINRA’s regulation proposal for nearly two years (here) and will continue to provide updates on all regulation changes that aim to protect […]

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.