I just re-read the InvestmentNews article I linked to earlier today. It seems lame to me that the broker / dealer that terminated its Cole relationship last week waited so long. This blog and other publications listed all the fees related to the Cole Holdings / Cole Credit Property Trust III transaction back in March. Pulling selling agreements then would have sent a stronger, more effective message than waiting four months.
I guess the supposed (passive-aggressive) punishment is to deny Cole reinvestment dollars when reps sell shares of Cole's two recent liquidity events. But to me, this begs a bigger issue: BDs are scared of liquidity events because their reps are selling shares of the newly liquid, but established, fully invested REITs and reinvesting back into high commission blind pool REITs. BDs don't want to tell their reps "no" and deny them a big payday. I'd bet this thinking was not only behind the Cole termination, but also played a part in the other BDs' decision to suspend sales of American Realty Capital Trust V, despite the excuses given in InvestmentNews.