Bill Easing Foreign Investment in REITs Passed by House

After wide approval, bill moves to Senate

More On Legal & Compliance

from The Advisor's Professional Library
  • Using Solicitors to Attract Clients Rule 206(4)-3 under the Investment Advisors Act establishes requirements governing cash payments to solicitors. The rule permits payment of cash referral fees to individuals and companies recommending clients to an RIA, but requires four conditions are first satisfied.
  • Use and Misuse of Social Media Social media is an inexpensive and effective way to communicate with established and prospective clients.  Nevertheless, when RIAs utilize social media to promote their advisory practices, they risk compliance problems for their firms.
The House on Friday, July 30, passed the Real Estate, Jobs and Investment Act of 2010 (H.R. 5901), a bill designed to make it easier for foreign investors to invest in U.S. real estate investments trusts (REITs).

The bill, approved by a vote of 402-11, now moves to the Senate.

Ron Kuykendall, a spokesperson for the National Association of Real Estate Investment Trusts (NAREIT) says that the bill will "help the U.S. real estate community, through listed REITs, raise very much needed equity from non-U.S. investors. And it would provide a source of capital" for the U.S. real estate market.

FINRA released a regulatory notice last year (Notice 09-09), which required that 18 months following the conclusion of a non-listed REIT's offering, the REIT must publish a per-share value based on an appraisal of the REIT's assets and operations so that broker-dealers could include this value on their customers' account statements.

Reprints Discuss this story

Most Recent Videos

Video Library ››