Bill would pave the way for mutual funds to invest in commodities

Mutual funds could invest directly in commodities under legislation introduced Wednesday by House Ways and Means Committee Chairman Charles Rangel, D-N.Y., and Select Revenue Measures Subcommittee Chairman Richard Neal, D-Mass.
DEC 17, 2009
Mutual funds could invest directly in commodities under legislation introduced Wednesday by House Ways and Means Committee Chairman Charles Rangel, D-N.Y., and Select Revenue Measures Subcommittee Chairman Richard Neal, D-Mass. The Regulated Investment Company Modernization Act of 2009 (HR 4337) includes a number of provisions to update the tax laws that apply to mutual funds. The rules have been changed little since the 1930s. “These reforms have been discussed for many years, and the time has come to do simple and inexpensive updates to the code as it applies to mutual fund companies,” Mr. Neal said in a statement. The provisions would cost $188 million over the next 10 years, according to the Joint Committee on Taxation. “Today's investors face a wide spectrum of investment options, and we need to make sure that our tax laws are keeping pace with these choices,” Mr. Rangel said in a statement. “By modernizing the rules that apply to [mutual funds] we can help minimize difficulties for funds and investors.” In addition to allowing mutual funds to invest directly in commodities, other major provisions in the tax bill would give investors in funds of funds the same tax treatment for foreign tax payments that other mutual funds are able to take advantage of. The bill also would spare investors in some mutual funds from having to file amended tax returns if their funds recharacterize their distributions after the end of a fiscal year that differs from the calendar year.

Latest News

LPL adds $600M UBS team in Tennessee
LPL adds $600M UBS team in Tennessee

The firm's latest additions, led by a second-generation financial advisor, are striking out via its Linsco employee advisor channel.

eMoney supports focused financial planning with enhanced needs analysis
eMoney supports focused financial planning with enhanced needs analysis

The Fidelity-owned fintech aims to help advisors connect with mass market and mass affluent prospects with single-goal conversations.

Trump SEC pick Paul Atkins grilled by Democrats in early political test
Trump SEC pick Paul Atkins grilled by Democrats in early political test

The prospective chair of the agency has pledged to shed conflicted interests and "return common sense to the SEC."

Finra moves to boot Alpine Securities, same firm that claims the regulator can’t
Finra moves to boot Alpine Securities, same firm that claims the regulator can’t

'If I were on the side of Alpine Securities, I’d put all my eggs in the federal court,' one attorney said.

CFP Board floats new procedural rules around bankruptcy, misdemeanors
CFP Board floats new procedural rules around bankruptcy, misdemeanors

If approved, the proposed revisions would achieve outcomes similar to the existing process while reducing the burden of oversight.

SPONSORED Retirement plan balances are flourishing. Why are so many advisors missing out on a $3 trillion opportunity?

Participants who receive professional 401(k) advice see higher returns on average, net, than those who don't.

SPONSORED Focus on clients, not compliance – why Gary Corderman found his fit with Farther

This wealth management platform finally delivers on the technology promises other firms couldn't - giving advisors a better way to scale and serve