We're thrilled to share the BBD Investment Management Group 2019-2020 Annual Report.Read More
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.Read More
On May 1, 2019, the SEC proposed amendments intended to:
- Improve the financial information reported to investors about acquired and disposed businesses
- Facilitate more timely access to capital
- Reduce the complexity and costs to prepare the disclosures
The release of the GIPS 2020 Standards is the most significant overhaul of the GIPS Standards in almost a decade. Below are significant provisions of the 2020 standards that could impact how firms calculate and present performance to their current and prospective clients.Read More
An Auditor’s Perspective for Boards of Directors/Trustees
In April, the SEC released proposed Rule 2a-5 under the Investment Company Act of 1940, which addresses valuation practices and the relative role of the Board for registered investment companies and business development companies. The proposal looks to be another “catch-up” by the SEC to account for the growing complexity of valuations and the evolution of developments that have taken place with respect to accounting and auditing regulations.Read More
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.Read More
Are registered funds recording taxable spin-off transactions correctly?Read More
Many advisers of registered products, including mutual funds and closed-end interval funds, invest in private alternative investments as part of their portfolio strategy. And generally, they are permitted by the Investment Advisers Act of 1940 to do so. While mutual funds are restricted to investing up to 15% of net assets in illiquid securities, there are no such restrictions for interval funds.Read More
In recognition of the operational challenges caused by COVID-19 for funds and their Trustees/Directors, the Securities and Exchange Commission (“SEC”) and the Internal Revenue Service (“IRS”) have both issued exemptions relating to filing due dates and other requirements.Read More
One of the many appealing aspects of the ETF vehicle is that it is generally designed to be tax efficient. The primary mechanism for achieving tax efficiency is the ability to redeem appreciated securities in-kind. Any gains realized on securities redeemed in-kind are not taxable and therefore do not need to be distributed to underlying shareholders. The ability to utilize custom baskets further enhances an ETF’s tax efficiency by redeeming a sampling of appreciated securities in redemption transactions, while selling depreciated securities to harvest losses. A seasoned ETF is unlikely to ever have to pay a capital gain distribution.Read More