Outreach to accredited investors rises among CRE crowdfunding firms | SEC publishes best-interest standard proposal in Federal Register | Attorney: Fiduciary rule in effect until court officially vacates it
May 17, 2018
National Leadership for Portfolio Diversifying Investments
CrowdStreet is one of the crowdfunding firms that has found success through focusing on accredited investors in commercial real estate. The firm and KBS Realty have collaborated on raising capital for the nontraded REIT KBS Growth & Income Real Estate Investment, which has an equity target of $1 billion.
The Securities and Exchange Commission's proposed rules for investment advice are officially open for public comment until Aug. 7. The rules were included in the Federal Register by the SEC, and they feature a best-interest standard for brokers, disclosure requirements for brokers and investment advisors, and further clarity on a current fiduciary standard.
The Labor Department's fiduciary rule remains in effect until the US Court of Appeals for the 5th Circuit issues a mandate vacating it, says David Kaleda of Groom Law Group. He notes firms should continue to comply with the rule until the court officially vacates it.
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Join us in Chicago on June 19 and 20 for the IPA's sixth annual Women's Initiative Network Forum 2018. We're bringing together leaders from across the financial-services industry for an interactive networking forum to discuss new perspectives on business leadership and inspire the next generation. The IPA WIN Forum spotlights the influence of women professionals, recognizes their incredible achievements and promotes diversity in the financial-services industry. See the full agenda and register.
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Griffin-American Healthcare REIT IV reported that its modified funds from operations grew by 214.2% year-over-year to about $4.4 million at the end of the first quarter. In addition, net operating income was about $8.3 million for the quarter, a year-over-year increase of about 188.2%.
LPL Financial and Lightyear Capital are interested in acquiring Cetera Financial Group, a source says. The companies reportedly have access to Cetera's proprietary information for due diligence purposes.
The Treasury Department's Financial Crimes Enforcement Network said the final version of its customer due-diligence rule has taken effect and that financial institutions must now comply with it. Among the provisions is the requirement that financial firms identify and verify the identity of anyone who owns 25% or more of any legal entity and the identity of the person who controls the entity.
Advisors need to carefully review the fine print of annual outside business activities disclosure forms to avoid a mistake that could bring on disciplinary actions, writes Alan Foxman, senior consultant and vice president at NCS Regulatory Compliance. "[T]aking the position that you can answer 'no' or 'none' on those forms just because you previously disclosed the activity is disingenuous and very likely misleading," Foxman notes.
Securities and Exchange Commission member Hester Peirce said the enforcement division should focus on big cases, rather than pursuing minor violations. "Our goal is not to investigate for the sake of investigating but to protect the capital markets by focusing our efforts on the enforcement actions with the biggest impact," she said.
The financial industry needs more female managers and executives, and a revamp of recruitment is the way to make that happen, Nasdaq CEO Adena Friedman says. Interviewing at least one woman for each senior role is challenging because "you see so many fewer women in the recruitment pool," she says.
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The Institute for Portfolio Alternatives (IPA) provides national leadership for the Portfolio Diversifying Investments (PDI) industry. We bring together the investment managers, broker-dealers, investment advisers and industry service professionals - new and established - who are dedicated to driving transparency and innovation in the marketplace. Through advocacy and industry-leading education, we are committed to ensuring all investors have access to real assets and the opportunity to effectively balance their investment portfolios.
The IPA seeks to raise awareness of PDI products among stakeholders and market participants, including: investment advisers, public policymakers and the investing public. We support increased access to investment strategies with low correlation to the equity markets: lifecycle real estate investment trusts (Lifecycle REITs, net asset value REITs (NAV REITs), business development companies (BDCs), interval funds and direct participation programs.