The Federation of Exchange Accommodators is the only professional trade organization to represent Qualified Intermediaries; for those victims and interested parties following the Ed Okun 1031 Exchange disaster, does it not strike you odd that the word “Qualified” would be associated with this business? According to all my research, input from industry professionals, and stories from victims of recent 1031 disasters, there is no official qualifications needed to start a 1031 exchange company.
The FEA is missing a very valuable and vital function: political power. If the FEA were able to create a platform to force new laws and regulations, at the federal and local level, they could become the most important organization within the Qualified Intermediary industry. In addition they would be the driving force behind these changes creating “real enforceable” ethics and code standards for their industry. On top of these facts, FEA membership and “certification” would then become the “gold standard” or seal of approval for all new and existing Qualified Intermediaries.
Unfortunately political intervention through new laws and standards is not the main focus of the FEA. The following is a sample of the information the FEA produces for it’s members and the public. There are many solid pieces of information for both the industry “professional and consumer” alike.
The first piece of information of interest is the organizations “Code of Ethics” page. The FEA describes it’s standards, ie background checks for all officers of a 1031 exchange company applying for membership, and the ethical practices it expects it’s members to uphold. In April the FEA “suspended” the membership of Ed Okun’s 1031 Tax Group: why the FEA did not remove 1031 Tax Group’s membership all together could be debated.
A second page of interest on the site is the FAQ section. This page is rich in information for the investor looking to understand and apply the power of 1031 exchange savings. It is also a solid tool for QI’s to reference.
Finally the last page of interest should be their “Calender of Events” page. The FEA is holding it’s “Annual Meeting” October 5-6 at the Westin Hotel (Michigan Ave.) in Chicago. It would be of benefit to see a network of local chapters and their events throughout the year-if such a thing exists? The idea to have city, county, and state chapters supporting the FEA on a smaller scale would provide a voice to QI’s and the public alike. Now that would be a real benefit!