The Financial Industry Regulatory Authority says some brokers are misleading clients about potential benefits of nontraded real estate investment trusts. FINRA officials say some materials emphasize investment income but don't make it clear that investors' principal might be tapped. FINRA has warned brokers not to use words such as "yield" and to spell out rules on redeeming investments. "FINRA notices like this recent release are models for proper investor communication protocols," IPA President and CEO Kevin Hogan said in a statement.

Related Summaries