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
(5/4), InvestmentNews (free registration)
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.
The Investment Program Association (IPA) was formed in 1985 to provide
effective national leadership for the direct investment industry. The IPA
supports individual investor access to a variety of asset classes not
correlated to the traded markets and historically available only to
institutional investors. These investments include public non-listed REITs
(NLREITs) and Business Development Companies (BDCs), Energy and Equipment Leasing
Programs, and private equity offerings. For the last 28 years, the IPA has
successfully championed the growth of such products, which have increased in
popularity with financial professionals and investors alike. Direct investments
are held in the accounts of more than 2 million individual investors, and the IPA's
member companies operate or have properties in all 50 states. The mission of the
IPA is advocating direct
investments through education. Access the wealth of IPA educational
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