Federation of Exchange Accommodators Supports Nevada 1031 Exchange Law

Philadelphia, PA (PRWEB) June 25, 2007 -- The Federation of Exchange Accommodators (FEA) announced today strong support of the state of Nevada's SB 476, a bill Governor Jim Gibbons signed on June 14 that becomes effective July 1, 2007.

The FEA is the only national trade organization formed to represent the Qualified Intermediary (QIs) industry and the interests of consumers who use these services. Qualified Intermediaries are professionals who are trained to execute 1031 Exchanges. The FEA also represents the legal/tax advisors and affiliated businesses that are directly involved in Section 1031 Exchanges. Section 1031 of the Internal Revenue Code provides that no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business, or for investment.

SB 476 also places the licensing and regulation of QIs under the Nevada Department of Business and Industry's Financial Institutions Division, which has oversight of state-chartered lending and depository institutions.

"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

Additional details on the law can be accessed via Financial Institutions Division's "2007 Legislative Activity" link on the Web at www.fid.state.nv.us.

"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.

In addition to The Association's Model Law and strict Ethics Code, the FEA offers a professional certification program and numerous continuing education programs for maintaining the highest level of integrity for industry professionals. The Certified Exchange Specialist (CES®) Program was established by the FEA in 2003 to formally recognize individuals who have satisfied an experience requirement and demonstrated through testing their comprehensive knowledge of Section 1031 and the facilitation of like-kind exchanges. Currently there are 246 CES® Designees nationwide. An announcement was made on June 18, 2007 announcing the most recent group of 15 CES® Designees appointed by the FEA.     

The Federation of Exchange Accommodators (FEA) is a national trade organization formed to represent qualified intermediaries (QI's), their primary legal/tax advisors and affiliates who are directly involved in Section 1031 Exchanges. Formed in 1989, the FEA was organized to promote the discussion of ideas and innovations in the industry, to establish and promote ethical standards of conduct for QI's, to offer education to both the exchange industry and the general public, and to work toward the development of uniformity of practice and terminology within the exchange profession. The FEA also provides timely input and updates on pending State and Federal legislation, Internal Revenue Service and Treasury Rulings, and Court Decisions.

For more information on membership in The FEA, and the Industry's upcoming annual conference, please visit www.1031.org.

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