How much are nontraded REITs really worth? Nontraded REITs
December 10, 2020 4 MINS
During the credit crisis of 2008, the bottom fell out of many nontraded real estate investment trusts, and financial advisers and customers learned that a REIT’s stated, estimated value, or what showed up on clients’ account statement, and the real value, what the REIT was worth on the street at that exact point in time, could be miles apart.
Nontraded REITs are illiquid securities, meaning that they are opaque and not priced daily by the market. Advisers sell them to investors looking for income and yield; in the past, nontraded REITs carried steep commissions, but the industry has moved away from that compensation model for the past few years.
Lawmakers want SEC to clarify how brokers can hold digital securities
The lack of guidance on custody is slowing the adoption of cryptographically based assets, experts say
December 10, 2020 3 MINS
A bipartisan group of lawmakers is calling on the Securities and Exchange Commission to clarify how broker-dealers can hold digital securities.
In a letter Wednesday to SEC Chairman Jay Clayton, nine members of the House of Representatives said the agency should develop requirements necessary for brokers to custody securities issued on blockchain or distributed ledgers, such as virtual currency, coins and tokens.
They noted that in July, the Office of the Comptroller of the Currency clarified that banks can provide custody of such cryptographic assets. They added that the SEC and the Financial Industry Regulatory Authority Inc. last year issued a joint statement on digital assets but haven’t set out custody policies, which has left B-Ds in limbo.