NEVADA TO REGULATE EXCHANGE ACCOMMODATORS

The state of Nevada legislature passed SB 476, a bill Governor Jim Gibbons signed on June 14 that became effective July 1, 2007.

SB 476 places the licensing and regulation of Qualified Intermediaries under the Nevada Department of Business and Industry’s Financial Institutions Division, which has oversight of state-chartered lending and depository institutions.  The bill was strongly supported by the Federation of Exchange Accommodators (FEA), of which Olympic Exchange Accommodators is a proud member.

“The FEA was a strong resource for our research team,” said Business and Industry Department Director Mendy Elliott. “We approached the FEA looking for background information on 1031 Exchanges, and their people stood by us throughout the process of drafting this bill. No organization could provide more detailed experience or insight into the potential gaps in the legalities of 1031 Exchanges. We are very appreciative for their commitment to consumer protections.”

Nevada’s new law outlines numerous consumer protections, including:

• Civil and background checks for owners and all money control persons of 1031 Exchange companies
• State Audits conducted by FID for Qualified Intermediaries
• Expanded bond and insurance liability coverage

“We strongly support any additional consumer protections that can be put in place to establish trust and confidence between customers of 1031 Exchanges and their intermediaries,” said Hugh Pollard, President, FEA. “The law itself uses similar provisions to the FEA’s own Model Law, which holds Qualified Intermediaries to a set of strict ethics expectations.”

Olympic Exchange Accommodators has taken important voluntary steps for all of our exchange customers – not solely for Nevada customers – to ensure the funds that your clients have entrusted with us are secure.  We now offer:

• Increased Fidelity Bond Protection up to $1,000,000.00
• Errors and Omissions Insurance
• 24 Hour On-Line Account Monitoring by your clients of their exchange funds
• Dual-signature requirement for transfer of funds
• Qualified Escrow Account set-up for your clients’ exchange funds

We look forward to doing business with you and your clients for many years in the future.

Cordially,

Jeffrey P. Helsdon
Certified Exchange Specialist®