It’s important to note that there is currently no federal regulation of qualified intermediaries. However, with the help of the Federation of Exchange Accommodators (FEA), several states have begun taking the lead in assuring higher professional standards for QIs. Some of the newly enacted requirements (which can vary from state to state) include:

· Qualified escrow and/or trust accounts for client funds

· Minimum bond and insurance requirements

· Fund withdrawal authorization requirements

· Registration and licensing requirements for QIs

· Investment limitations on exchange proceeds

These are just some of the new state level regulatory requirements for QIs, and Rodeo Exchange will take a leadership role in making sure exchangers are properly protected.