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Dear Members and Friends,

The IPA is pleased to share some important advocacy updates and encourage everyone to sign up for the IPA’s Annual Policy and Government Affairs Strategic Planning Retreat on January 7-8 in Scottsdale, Arizona (details below).

Advocacy Update. In Washington, D.C., yesterday, Tony and I attended a reception and hosted a dinner honoring Christopher Gerold, Chief of the New Jersey Bureau of Securities and 2019-2020 President of the North American Securities Administrators Association (NASAA).  On October 16, Tony and I also attended and presented at Nareit’s annual Public Non-Listed REIT (PNLR) Council Meeting where we covered issues relevant to the PNLR/PDI industry.  Tomorrow, I look forward to a Congressional briefing on Capitol Hill on the importance and impact of financial literacy sponsored by one of our members, FS Investments.

1031 LKE Capitol Hill Fly In Day. On Wednesday, November 13, 2019, the IPA will be holding a 1031 Like-Kind Exchange (LKE) Capitol Hill Fly-In Day.  Our members will be meeting with members of Congress and their staffs, Committee Staff and Administration officials on the importance of the 1031 LKE market.  Following passage of the 2017 tax law (Tax Cuts and Jobs Act, H.R. 1) in which 1031 LKEs for real property were retained and protected, it is vital that we continue to emphasize with lawmakers the importance of 1031 LKEs for companies, investors and the greater economy.  The treatment of 1031 LKEs continues to be at risk to pay for other changes to the tax code and to fund federal spending.

Accredited Investor Legislation. Last Friday, Reps. French Hill, R-Ark., and David Schweikert, R-Ariz., reintroduced the Fair Investment Opportunities for Professional Experts Act (H.R. 4762). Similar to the same bill last year that passed the full House of Representatives, H.R. 4762 expands the criteria for qualifying as an accredited investor, including persons with certain credentials such as registered broker-dealers, investment advisers and their representatives, and categories of investors based on non-financial thresholds such as education, job or professional experience.  Senator Thom Tillis (R-N.C.) is actively working on a bipartisan companion bill in the Senate and we look forward to supporting its reintroduction.

The IPA continues to support commonsense changes to update and expand the definition of accredited investor, including through SEC rulemaking. You can read more on our position on this issue in our recent comment letter to the SEC on its Concept Release on Harmonization of Securities Offering Exemptions.  In that letter we discuss both the accredited investor definition as well as recommendations for modernizing the securities exemption offering framework, including Rule 506, Regulation A and general solicitation rules.

FINRA’s Regulation Best Interest Resources. Lastly, FINRA recently published information for member firms seeking to comply with Regulation Best Interest by the June 30, 2020 deadline.  Please visit their website to find further information about this new member resource, including the following: (1) Regulation Best Interest Checklist, and (2) Regulation Best Interest Conference in Washington, DC on December 18, 2019, which will include FINRA and SEC regulators, executives and industry practitioners. The one-day event is free of charge for the first two attendees per FINRA member firm.

IPA Strategic Planning Retreat (January 7-8, 2020). Remember to sign up for the IPA’s Annual Policy and Government Affairs Strategic Planning Retreat in Paradise Valley, Arizona (Scottsdale area), at the Mountain Shadows Resort. The IPA Policy and Government Affairs Committee convenes this industry thought leadership retreat, bringing together senior leadership from across our industry to identify and prioritize the legislative and regulatory initiatives critical to the IPA community. We will be hosting a Welcome Reception & Dinner on Tuesday, January 7, followed by a Strategy Planning Session on Wednesday, January 8. Spots are limited so remember to register here. We look forward to seeing you there!

The IPA continues its work with our coalition partners, legislators and regulators in Washington, D.C. and throughout the country to advocate and educate on behalf of the PDI industry!


Anya Coverman
SVP, Government Affairs and General Counsel
Institute for Portfolio Alternatives