ELLICOTT CITY, Md., April 21, 2015 (GLOBE NEWSWIRE) -- As it celebrates its 30th anniversary of national leadership for the Direct Investments industry, The Investment Program Association (IPA) today released a preview of its positions on four important issues facing investors, legislators and regulators. Set to be held in Washington, D.C., from April 27-29, the IPA Executive Summit and Fly-In will bring together senior executives with legislative and regulatory experts to share their specialized knowledge and experience.
"As the IPA proudly celebrates its 30th anniversary, we are thrilled to bring together over 100 senior level executives to discuss the issues that will shape the future of our industry during a full day Summit," said Kevin M. Hogan, President and CEO of the Investment Program Association. "The next day, 75 industry leaders will meet on Capitol Hill with legislators from across the country to directly communicate our position on issues central to individual investors and at the core of our industry."
The four focus issues for the IPA membership include:
DOL Fiduciary Standard
Issue: The Department of Labor has proposed a rule that would fundamentally rewrite the way that retirement savings are provided in the United States, increasing cost and complexity for the average investor.
IPA Position: The IPA believes the proposed rule changes would limit options, increase costs and reduce access for small savers to the affordable financial advice that is crucial to ensuring financial security in retirement.
Section 1031 Like-Kind Exchanges
Issue: The President's budget proposals and several Congressional tax reform proposals would eliminate or dramatically limit Section 1031 Like-Kind Exchanges.
IPA Position: The IPA believes that limiting or eliminating Section 1031 like-kind exchanges would have a devastating impact on economic development in the United States. Section 1031 of the Internal Revenue Code recognizes that the exchange of one property held for investment or business use for another property of a like-kind, results in no change in the economic position of the taxpayer and, therefore, should not result in the immediate imposition of tax.
Accredited Investor Definition
Issue: The Dodd-Frank Act requires the SEC to review the definition for accredited investor once every four years beginning in 2014. This review has begun.
IPA Position: The current definition of accredited investor excludes many sophisticated investors and results in limitations on the flow of capital, restricting the creation of jobs and new business.
The IPA believes that the SEC should assure that any changes do not restrict or further reduce the numbers of accredited investors. The SEC should consider additional indicators of sophistication such as specialized work experience, investment experience, licensing, professional credentials, and use of professional advice.
Modernization of Business Development Company (BDCs) Regulation
Issue: BDCs make direct investments in smaller, developing American businesses providing access to capital that is otherwise unavailable through traditional funding sources, such as banks or the public equity capital markets. However, current BDC regulation has made it extremely difficult for BDCs to deliver on their mission to fund small businesses.
IPA Position: Because of their critical importance in delivering funding to small businesses, the regulatory structure for BDCs needs to be modernized.
About The Investment Program Association
The Investment Program Association (IPA) was formed in 1985 to provide effective national leadership for the direct investment industry. The IPA supports individual investor access to a variety of asset classes not correlated to the traded markets and historically available only to institutional investors. These include public non-listed REITs (NL REITs), business development companies (BDCs), energy and equipment leasing programs, and private equity offerings. For 30 years the IPA has successfully championed the growth and improvement of such products, which have increased in popularity with financial professionals and investors alike. Direct investments are held in the accounts of more than 2 million individual investors, and the IPA's member companies operate or have properties in all 50 states. Today these investment products function as a critical component of effectively diversified investment portfolios and serve an essential capital formation function for the US economy. The mission of the IPA is advocating direct investments through education. Access the wealth of IPA educational materials here, or visit the IPA online for more information about becoming a member.
To stay up-to-date with IPA news, follow @IPADirectInvest on Twitter.
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Source:Investment Program Association