FINRA backs cost disclosure for non-traded REITs

The Financial Industry Regulatory Authority has proposed a rule that would require brokers to disclose fees and commissions paid to them and dealer managers when listing the share price of non-traded real estate investment trusts. The rule is intended to give a clearer picture of the cost of investing in a non-traded REIT. The IPA says it worked closely with FINRA on the proposal. "Deducting commissions and direct marketing fees on the account statement represent steps forward for these increasingly popular products, and the IPA supports this part of the proposal," the IPA said in a statement.

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