REITs, RIA regulation, retirement planning and risk grab advisers' attention

Four R-words drew advisers' attention this week: risk, regulation, retirement planning and REITs. Specifically, the CEO of a real estate investment firm broke down the hidden duration risks in nontraded REITs. An RIA got hammered with a $15 million SEC fine, with its founder banned from the industry — leading to an interesting personal rebranding. Retirement guru Mary Beth Franklin broke down the ins and outs of Medicare and its impact on clients' retirement plans. And last but not least, REIT kingpin Nicholas Schorsch and his broker-dealer jumped back into the acquisition game. Here's the rundown of what had InvestmentNews readers buzzing this week: Beware duration risk in nontraded REITs https://www.investmentnews.com/wp-content/uploads/assets/graphics src="/wp-content/uploads2014/08/CI9588488.JPG" Jacob Frydman, chairman and CEO of United Realty, sounded the alarm about the hidden duration risks in triple-net lease nontraded REITs, in the event that interest rates rise. In his piece, he pulled out this staggering statistic: 77% of nontraded REIT portfolios are invested in triple-net lease, making this a hot-button issue for brokers and advisers. RIA firm given huge fine, founder barred over $10.9M client fraud https://www.investmentnews.com/wp-content/uploads/assets/graphics src="/wp-content/uploads2014/08/CI9588588.JPG" J.S. Oliver Capital, an RIA founded by Ian Oliver Mausner (pictured), received a $15 million fine for breach of fiduciary duty. Mr. Mausner got banned from the industry and was fined $3 million, but he's already moved on to his next gig: a relationship consultant and advice author for divorcees. No word on if the sales of his new book, titled "Getting Back on Top: The Uncensored Guide to Sex, Dating and Relationships After Divorce," will cover the costs of his hefty SEC fine. Advisers, clients overlooking Medicare costs in retirement Mary Beth Franklin covered the oft-overlooked importance of properly accounting for Medicare in clients' retirement plans. She tried to prepare advisers for the coming onslaught of Medicare questions from clients, though advisers might be ahead of the game. In a poll conducted by IN in Mary Beth's story, 80% of respondents said they're already talking to clients about their Medicare options. Schorsch's RCAP strikes deal for independent firm known for selling alts https://www.investmentnews.com/wp-content/uploads/assets/graphics src="/wp-content/uploads2014/08/CI9588688.JPG" Why is Nicholas Schorsch smiling? Because the broker-dealer he controls, RCS Capital (known by ticker symbol RCAP), got back into acquisitions by picking up VSR Financial Services, a firm known for selling alternative investments. VSR has $12.3 billion of assets and 264 producing independent financial advisers, adding to Mr. Schorsch's widening broker-dealer empire. Commenter 'TheBlogger' raised a subject senior columnist Bruce Kelly has touched on before: will Schorsch's wheeling eventually lead to a deal for AIG's Advisor Group?