FINRA Amends Non-Traded REIT Pricing Proposal

Posted on July 21st, 2014 at 9:28 AM

From the Desk of Jim Eccleston at Eccleston Law Offices:

Amid controversy related to estimating values of illiquid REITs and direct-participation programs on customer statements, FINRA has amended its non-traded REIT pricing proposal.

In an earlier version of the proposal, providing valuation would have been voluntary. If valuations were not provided, the securities could have been shown as “not priced.”

Under the revised proposal, estimated values of illiquid securities would have to be provided annually, rather than once every two years, beginning within 150 days after the second anniversary of breaking escrow. Likewise, under the revised proposal, product sponsors would have to calculate per-share values using one of two methodologies: either a net investment amount based on the proceeds available after offering costs, or an appraised amount calculated with the assistance, or confirmed by, an independent third party.

Those values would be presumed to be “reasonable” under FINRA rules. 

The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 50 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston


Return to Archive



This was the best of all possible outcomes and I cannot thank you and the team enough.

Michael S.


November 28, 2023
Arbitration Mandated for Former Morgan Stanley Advisors' Class Claim on Deferred Compensation

A federal judge in Manhattan has granted Morgan Stanley’s request to transfer a potential class action lawsuit to arbitration.

November 28, 2023
Wells Fargo Under SEC Scrutiny for Cash Sweep Programs

The Securities and Exchange Commission (SEC) is investigating Wells Fargo & Company over cash sweep options provided to investment advisory clients.

November 22, 2023
FINRA Alleges $2 Million in Client Losses and $2 Million in Commissions Due to Advisor's Churning

According to a Financial Industry Regulatory Authority (FINRA) complaint, Stewart "Paxton" Ginn excessively traded accounts over two and a half years, resulting in $2.22 million in losses and $2.24 million in commissions for him and his firm.