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The IPA Offers a Preview of its Four Focus Areas

Coinciding with the celebration of an anniversary, the Investment Program Association’s (IPA) Executive Summit and Fly-In kicks off next week, April 27th, in Washington, D.C. In preparation for the invitation-only event, the trade group for the Direct Investment Industry released a preview of its positions on four major topics being discussed by regulators, legislators, investors, and those in the industry.

Senior Executives from IPA member firms including sponsors, broker-dealers, and affiliates will focus on the following priorities during next week’s Summit:

  • The Department of Labor’s Fiduciary Standard Proposal
  • Section 1031 Like-Kind Exchanges
  • The Accredited Investor Definition
  • Modernization of Business Development Company (BDC) Regulation

“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,” commented Kevin M. Hogan, President and CEO of the Investment Program Association.

The IPA, a voice for the industry and investors, has worked with member firms and regulators for three decades to improve the advisor-sold non-traded direct investment industry. It’s a job that never ends and one that constantly evolves.

Today’s Issues and the IPA’s Positions

DOL’s Fiduciary Standard Proposal

The IPA believes the DOL’s proposed rule change regarding fiduciary standards would alter the way retirement savings are offered and would reduce options, add costs, and make it more difficult for smaller savers to access the financial advice that is needed to provide them financial security in retirement.


Section 1031 Like-Kind Exchanges are at risk of being eliminated due to the President’s budget proposals and Congressional tax reform proposals. The IPA believes limiting or wiping out Section 1031 would negatively impact economic development in the U.S.

Be sure to read Section 1031 Tax-Deferred Exchanges: Swap Till You Drop

Accredited Investors

Accredited investors are defined by the Securities and Exchange Commission (SEC) as:

  • A natural person who earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, OR
  • A natural person that has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).

The SEC, as required by the Dodd-Frank Act, must review the definition of an accredited investor once every four years beginning last year, 2014.

The IPA believes the current definition excludes many sophisticated investors and that the SEC should be mindful to not make changes that further reduce the number of accredited investors. Doing so would limit the flow of capital available for businesses to grow and create new jobs.

Be sure to read Accredited Investor Standard: Changes May Be Coming?


BDCs face regulatory challenges that limit their abilities to fund small businesses. The IPA believes that improvements to the regulatory structure of BDCs are needed and if done correctly, would allow more capital to fuel the growth of small businesses throughout the country.

The IPA’s event runs from the 27th to the 29th. On the 28th, attendees will visit members of the Senate and Congress on Capitol Hill to discuss the four focus areas, among other priorities.