August 5, 2022

NASAA Extends Comment Period for Revisions to Policy on REITs

NASAA extended the comment period on proposed revisions to its Statement of Policy Regarding Real Estate Investment Trusts ("REITs"). The deadline for public comment is now September 12, 2022.

As previously covered, the revisions are intended to enhance retail investor protections by (i) supplementing the suitability section on conduct standards for brokers selling non-traded REITs with references to the new best interest standard, (ii) updating the net income and net worth financial figures in the suitability section adjusted for inflation, (iii) adding standardized concentration limits to the suitability section, and (iv) adding "a new prohibition against using gross offering proceeds as an investment objective or strategy to make distributions."

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