Broker-dealers might have to significantly change the way they report illiquid investments, such as nontraded real estate investment trusts, on client statements, according to a plan being developed by the Financial Industry Regulatory Authority. Broker-dealers would have several options under proposed changes to Rule 2340 that have been adopted by FINRA's board. IPA supports subtracting sales commission from nontraded REITs on clients' account statements immediately after their sale, but the association opposes subtracting other costs, such as due diligence expenses.

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