SEC Approves Amendments to FINRA Rule 2310 and NASD Rule 2340
The SEC approved amendments to NASD Rule 2340 (Customer Account Statements) to modify requirements regarding to the inclusion of per share estimated values for direct participation program (DPP) and unlisted real estate investment trust (REIT) securities on account statements, and to FINRA Rule 2310 (Direct Participation Programs) to make corresponding changes to the requirements to members’ participation in public offerings of DPP or REIT securities.
These amendments require general securities members to include in customer account statements a per share estimated value for a DPP or REIT security developed in a manner reasonably designed to ensure that the per share estimated value is reliable.
The amendments become effective on April 11, 2016 and significant changes to customer statements involving REITs and DPPs will need to occur and additional disclosures will be necessary.
For questions regarding this, or other securities related questions, please contact Braden Perry at firstname.lastname@example.org, or visit www.kennyhertzperry.com.