The Regulated Investment Company Modernization Act Of 2010
Mondaq Business Briefing › United States Law Articles in English (2011)
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The Regulated Investment Company Modernization Act Of 2010
On Dec. 8, 2010, the Senate approved H.R. 4337, the Regulated Investment Company Modernization Act of 2010 (the Act), with an amendment to the version approved by the House of Representatives on Sept. 28, 2010. On Dec. 15, 2010, the House also approved the amended version of the Act, clearing the way for President Obama to sign the Act, which he is anticipated to do in due course (the date signed, the date of enactment). The Act is the first meaningful and comprehensive revision to Subchapter M since the adoption of the Internal Revenue Code of 1986 (the Code), and certain provisions dating back more than 60 years. Once the Act is signed into law, a regulated investment company (RIC or fund) may immediately take advantage of certain new and advantageous rules regardless of its fiscal year-end (e.g. the savings provisions for qualification failures, exchange treatment for distributions in redemption of RIC stock and the modifications related to the excise tax). However, RICs with fiscal year-ends other than Dec. 31, (e.g. June 30 or Oct. 31), will have to wait until their next tax year begins (July 1 or Nov. 1, respectively), to implement certain of the Act's provisions, such as the repeal of the preferential dividend rule and...
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