LPL Suspends Sales of Nontraded REITS and Interval Funds

Posted on April 27th, 2020 at 5:17 PM
LPL Suspends Sales of Nontraded REITS and Interval Funds

From the Desk of Jim Eccleston at Eccleston Law LLC:

Due to the uncertain conditions created by the outbreak of COVID-19, LPL Financial has stopped selling several nontraded real estate investment trusts (“REITs”) as well as some publically traded property interval funds.  Interval funds, a type of closed-end fund whose shares are not traded on a secondary market, had been growing in popularity over the last couple years.  Interval funds are often comprised, at least in part, by nontraded REITs. 

Part of the concern surrounding these products is the inability to accurately price the underlying real estate assets, given the current volatility and uncertainty caused by COVID-19.  LPL’s decision to stop selling these products does not appear to be permanent.  The firm said that it hopes to be able to offer those products again soon.

Both nontraded REITS and interval funds are complex products.  All risks must be disclosed.  And the investments must be suitable.  

Investors who have lost money in nontraded REITs or interval funds should contact the professionals at Eccleston Law to discuss their recovery options.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: eccleston, eccleston law, james eccleston, reit, interval funds, covid-19

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