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WASHINGTON, D.C. – (July 12, 2022) – The North American Securities Administrators Association (NASAA) is seeking public comment on proposed revisions to its Statement of Policy Regarding Real Estate Investment Trusts.

“The proposed revisions are aimed at updating and enhancing NASAA’s Statement of Policy Regarding Real Estate Investment Trusts (REITs) including key investor protection provisions,” said Melanie Senter Lubin, NASAA President and Maryland Securities Commissioner. “I appreciate the considerable time and work NASAA’s Corporation Finance Section and Corporation Finance Direct Participation Programs Project Group have dedicated to drafting these revisions.”

Last revised by NASAA membership in 2007, the statement of policy applies to the qualifications and registrations of REITS. The proposed revisions would update the conduct standards for brokers selling non-traded REITs by supplementing the suitability section with references to the SEC’s best interest conduct standard. The proposal also includes an update to the net income and net worth requirements through adjusting upward to account for inflation occurring since the last adjustment.

“The REIT guidelines have not been updated for more than 15 years and these revisions are long overdue. If adopted, the proposed revisions will make key inflationary adjustments to existing suitability standards and promote uniformity in state concentration limits, both of which are key to limiting retail investor risk,” said Andrea Seidt, NASAA’s Corporation Finance Section Committee Chair and Ohio Securities Commissioner.

The proposed revisions also include a new prohibition against using gross offering proceeds to fund distributions, a controversial practice by some sponsors that may confuse and mislead investors about product performance and returns.

The proposed revisions are posted on the NASAA website with instructions to the public on how to submit comments. The deadline for submitting comments is August 11, 2022. Following the public comment process, the proposed revisions will be submitted to the NASAA membership for a vote for approval.


About NASAA:

Organized in 1919, the North American Securities Administrators Association (NASAA) is the oldest international organization devoted to investor protection. Its membership includes the securities regulators in the 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands; the 13 provinces and territories of Canada; and the country of Mexico with a shared mission of protecting investors from fraud and abuse. For more information, visit

For More Information:
Jeanne Hamrick | Director of Communications

Karen Grajales | Communications & Outreach Manager


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