Washington, DCFederation of ExchangeAccommodatorsFederal Trade Commission

The petition, submitted to the FTC earlier this month, calls forrules that would: require persons who want to act as exchangefacilitators to register with the FTC; require facilitatorcompanies to designate an "exchange facilitator officer" withdemonstrated experience and training; require QIs to "act as acustodian of exchange funds and invest in a manner that providessufficient liquidity and preserves the principal of the exchangefunds;" and require facilitators to maintain certain levels ofinsurance, bonds, letters of credit and/or deposits. It also callsfor authorization of the FTC "to revoke or suspend a registrationfor misrepresentations, failing to account for property belongingto others, or deceptive conduct," accord to the FEA.

The proposal in large part mirrors the FEA's own code of ethicsand is the result of two high-profile failures of QIs in the pastyear as well as efforts in some states to adopt regulations oftheir own. As previously reported in NET LEASE fourm, Nevadarecently adopted a new law regulating exchange facilitators, and inaddition to a proposal in California, the FEA says it is aware ofsimilar legislative interest in Colorado, Idaho and Washington.