IPA Urges SEC to Approve Modernized Underwriting Compensation Framework
The Institute for Portfolio Alternatives (IPA) has submitted a comment letter to the U.S. Securities and Exchange Commission (SEC) supporting proposed amendments to FINRA Rule 5110 that would modernize the underwriting compensation framework.
The proposal incorporates key recommendations advanced by IPA, particularly clarifying the treatment of certain seed capital investments in direct participation programs (DPPs) and nonlisted REITs. IPA previously urged refinements to ensure the exclusion operates clearly, consistently, and in alignment with how NAV REITs and DPPs function in practice.
FINRA’s revised proposal reflects those improvements, enhancing regulatory clarity and better aligning the rule with current market structure.
The SEC is now seeking public comment on the amendments. IPA’s February 20 letter encourages approval of the proposal as revised.
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