Regulations promising greater transparency could dramatically change the direct investment fund raising landscape.

Real Assets Adviser editor Ben Johnson recently sat down with Tom Voekler, president of the Alternative and Direct Investment Securities Association, for an update on new rules surrounding direct investments.

BJ: Nontraded REITs and DPPs have to make substantial reporting changes due to a new FINRA Rule. Tell us what it means for the industry.

TV: The Customer Accounting Rule has been a major concern for all players in the nontraded real estate investment trust (REIT) space. In October 2014, the U.S. Securities and Exchange Commission approved amendments proposed by FINRA, known as 14-006, to modify NASD Rule 2340 and FINRA Rule 2310. These rules were amended to provide greater transparency on customer account statements provided to investors of publicly registered nontraded REITs and other direct participation programs (D