Investment Company Notebook

In BBD's latest Webcast, John Braun and Cory Stewart teamed up with Karen Aspinall from Practus and Terry Gallagher from UMB for a dynamic discussion on the SEC's new Derivatives Rule.

Join our webcast on February 17 at 2:00 p.m. EST for an important update regarding this new Rule and how to navigate potential impacts to your funds.

In BBD's latest Webcast, John Braun and Cory Stewart teamed up with Steve Connors from SEI and David Freese and Sean Graber from Morgan Lewis for a dynamic discussion on the SEC's new proposed filing and disclosure modernization. 

Join our webcast on December 15 at 2:00 p.m. EST for an important update on how filing and disclosure modernization will impact your funds.

One of the main provisions of the 2017 Tax Cuts and Jobs Act (“TCJA”) was Section 163(j), which limits the deductibility of business interest expense (“BIE”) for corporations. On July 28, 2020, Treasury and the IRS released proposed regulations that provided substantial guidance, specifically with its application to Regulated Investment Companies (“RICs”). 

In BBD's latest Webcast, John Braun and Cory Stewart teamed up with Joanne Huckle from Ogier and BBD Cayman partner Sam Young for a lively discussion on an important Cayman funds update.

Join our webcast on November 11 at 2:00 p.m. EST for an important Cayman Funds update. 

BBD partner John Braun recently offered his gatekeeper perspective on the evolution of fair value and the SEC's proposed Rule 2a-5 in a Viewpoints column for Fund Board Views.

In April, the SEC released proposed Rule 2a-5 under the Investment Company Act of 1940.  The proposed Rule is the next step in an ongoing effort to address valuation practices more comprehensively for registered investment companies and business development companies.

Rule 2a-5 will create a significant shift in the roles and interaction of Boards and investment advisors related to fair value determinations.  Everyone involved in the management and oversight of registered funds will be impacted by these developments.

In BBD's latest Webcast, John Braun and Cory Stewart teamed up with Cillian Lynch from Stradley Ronan and Brad Swenson from SS&C ALPS for a lively discussion about The Next Evolution of Fair Value: The SEC's Proposed Rule 2a-5.

The Webcast included considerations from the auditor, legal and administrator perspectives.

To view a replay, click the link below.

The Next Evolution of Fair Value: The SEC's Proposed Rule 2a-5

Given the current COVID-19 crisis and its economic impact, it’s possible that some Regulated Investment Companies (“RICs”) could be exploring ways to retain their cash.  The shareholder distribution requirements of IRC Section 851, however, remain, and it is highly unlikely Treasury or the IRS would ever grant relief in this area.