State regulators oppose mandatory arbitration for investors
The North American Securities Administrators Association, which represents state securities regulators, has called on the Securities and Exchange Commission to bar investment advisers from forcing clients to resolve disputes through arbitration and give up their right to go to court. "It has been our longstanding position that the 'take it or leave it' approach represented by these mandatory clauses is harmful to investors," NASAA President A. Heath Abshure wrote in a letter to SEC Chairwoman Mary Jo White. Reuters
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Di Florio is leaving SEC to head up FINRA risk division
Carlo di Florio, head of the Securities and Exchange Commission's national examination program, is taking a new job as head of the Financial Industry Regulatory Authority's recently created risk and strategy office. Di Florio, who joined the SEC in light of the Bernard Madoff scandal, will be replaced by Andrew Bowden, who is now serving as the SEC's deputy director of compliance, inspections and examinations. Reuters
CommonWealth REIT is challenged over outside management
CommonWealth REIT's use of outside managers to decide when to buy and sell each property is raising objections from shareholders, who note that the managers' interests might differ from those of investors. "The adviser does well if the REIT gets bigger, but the shareholders may not be well served by the REIT getting bigger," said Jim Sullivan, a managing director at researcher Green Street Advisors. CommonWealth is facing an attempt by its second-biggest investor to remove the board. Financial Advisor online
PIMCO's El-Erian sees changing dynamics for advisers
Pacific Investment Management CEO and co-Chief Investment Officer Mohamed El-Erian says investing dynamics are changing, and financial advisers must adjust their approaches to continue to serve clients. Advisers must be aware of not only how risk dynamics are evolving but also how investor and family dynamics are changing and possibly adjusting client objectives, El-Erian says. AdvisorOne
Alternative investments can pay off with diversified core
To the traditional world of core and alternative assets, many investors are adding diversifiers, including commodities, emerging-market stocks, real estate and natural resources. Alternatives outside these categories show mixed performance over the long term but can be valuable add-ons if a portfolio is diversified. Financial-Planning.com
IPA board of directors approves first industrywide valuation guideline for nonlisted REITs
On April 25, the IPA board of directors unanimously approved the adoption of a valuation guideline for nonlisted real estate investment trusts. This guideline is a landmark for IPA and our industry. After two years of tireless work, we speak with one voice about the recommended methodology for valuing nonlisted REITs.
The valuation guideline is intended to benefit IPA members and the investing public by:
Download the valuation guideline.
- Conforming with institutional real estate valuation standards.
- Enhancing the independence of the valuation process.
- Accelerating the availability of valuation information to investors.
- Enhancing the quality of valuation disclosure to the investing public.
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Since its establishment in 1985, the IPA has championed the growth of direct
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