Regulated Investment Company Modernization Act

In December 2010, ICI welcomed enactment of H.R. 4337, the Regulated Investment Company Modernization Act. The Act updates and resolves antiquated or conflicting mutual fund tax rules, many of which date back to 1936 and have not kept pace with the structure, operations, and investments of the fund industry. These changes to the tax law will improve efficiencies for funds, allowing them to focus on servicing their shareholders. In addition, some of the bill’s provisions benefit investors directly. For example, the Act provides tax benefits for international investments made through funds of funds, and updates tax reporting requirements so shareholders will have to file fewer amended tax returns.