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REIT and Fund Compliance
The regulatory environment is constantly evolving and real estate financial officers need to be sure that they are protecting both their company and their investors.
The SEC, for example, is turning its attention to the real estate sector, and increasing its scrutiny of reporting for investment-level and fund-level fees and expenses. REITs are becoming increasingly popular, but along with many valuable benefits come strict compliance rules that must be considered. New revenue recognition standards mean financial reporting processes and systems have to change—if they haven’t already—to implement the new guidance and satisfy the new disclosure requirements.
Real estate structures are larger and more complex than ever before, and the parties that are participating are more focused, educated and accountable. Fund managers need to ensure their investments in the compliance and reporting function are helping them stay abreast of their compliance obligations.