SEC Requests Further Comment on FINRA-Proposed Rule Change Relating to Per Share Estimated Valuations for Unlisted DPP and REIT Securities (Fed. Reg.)

The SEC issued an order instituting proceedings to determine whether to approve a FINRA-proposed rule change to NASD Rule 2340 ("Customer Account Statements") and FINRA Rule 2310 ("Direct Participation Programs") to modify the requirements applicable to members' participation in a public offering of unlisted direct participation programs ("DPPs") or real estate investment trust ("REIT") securities.

Pursuant to the order, the SEC is requesting further comment as to whether the FINRA proposal is consistent with the requirements of Exchange Act Section 15A(b)(6) and 15A(b)(9) ("Registered Securities Associations"), which state that FINRA rules must be designed to prevent fraudulent and manipulative acts and practices to promote just and equitable principles of trade, as well as not impose any unnecessary or inappropriate burden on competition.

Comments on whether the proposed rule change should be approved or disapproved are due by June 26, 2014. Any person wishing to file a rebuttal to another person's submission must file the rebuttal by July 11, 2014.

See: 79 FR 30217. Related news: FINRA Proposes Amendment to Rule Regarding per Share Estimated Valuations for Unlisted DPP and REIT Securities (Fed. Reg.) (February 19, 2014); FINRA Proposes Rule Change Relating to per Share Estimated Valuations for Unlisted DPP and REITS (February 3, 2014) SIFMA Submits Comments to the SEC on Unlisted DPPs and REITs on Customer Account Statements (March 12, 2014).