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Download: Advisory on Opportunity Zone Investments

Washington, DC, July 22, 2019 – The North American Securities Administrators Association (NASAA) today issued an investor advisory raising awareness of the risks associated with investments in opportunity zones, economically distressed communities where new investments, under certain conditions, may be eligible for preferential tax treatment as part of the 2017 Tax Cuts and Jobs Act.

“This new program provides an opportunity to strengthen investments in low-income communities and rural areas that traditionally struggled to attract the capital necessary to spur economic growth and job creation,” said NASAA President and Vermont Commissioner of Financial Regulation Michael S. Pieciak. “As with any new investment opportunity, investors should do their homework to be sure they fully understand the potential risks and benefits related to opportunity zone investments.”

Investors attracted to opportunity zone investments for the potential tax benefits and promise of return on investment should weigh various factors before deciding to invest. The advisory discusses how opportunity zone investments work, the risks investors should understand when considering opportunity zone investments, and steps investors can take to protect themselves.

Separately, NASAA and the U.S. Securities and Exchange Commission (SEC) last week  issued a summary that explains the application of the federal and state securities laws to opportunity zone investments. The summary also provides an overview of the SEC and state requirements relating to qualified opportunity funds and their securities offerings, broker-dealer registration, and considerations for advisers to a qualified opportunity fund. The summary is available on the NASAA website here.

For More Information:
Bob Webster | Director of Communications