IPA Submits Response to Ohio Securities Q2 Bulletin Citing Misleading Examples of Non-Compliant Issuer Advertising
The IPA recently sent a letter to Andrea Seidt, Commissioner of the Ohio Securities Division (the Division), in response to the Cover Story in the Second Quarter Ohio Securities Bulletin (the bulletin) titled “Registration Section Review of Issuer Advertising.”
This response follows a similar letter the IPA submitted earlier this year in response to the bulletin’s critique of non-listed REIT valuations based on flawed and dated studies, to which the IPA requested a correction.
The most recent bulletin from the Division objects to false, misleading and unreliable information or claims within advertising material that could harm investors. The IPA supports full transparency, so investors and their advisors are well informed about their investment decisions.
The bulletin, however, references a variety of cases as examples of false, misleading and unreliable information within advertising materials that the IPA believe are contradictory to common practice, and that would ultimately result in the unintended consequence of causing confusion among retail investors. This would be in direct contradiction to the bulletin’s intent. Our letter details why the examples the Division references are problematic and offers constructive feedback and suggestions.
The IPA continually seeks to proactively engage in constructive dialogue with the Division, and we thank each of our IPA members who have provided important feedback and assistance with this issue and others.
President and CEO
Institute for Portfolio Alternatives