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

Northern Trust names new West Region president for wealth
Northern Trust names new West Region president for wealth

The new regional leader brings nearly 25 years of experience as the firm seeks to tap a complex and evolving market.

Capital Group extends retirement plan services further with a focus on advisors
Capital Group extends retirement plan services further with a focus on advisors

The latest updates to its recordkeeping platform, including a solution originally developed for one large 20,000-advisor client, take aim at the small to medium-sized business space.

Why RIAs are the next growth frontier for annuities
Why RIAs are the next growth frontier for annuities

David Lau, founder and CEO of DPL Financial Partners, explains how the RIA boom and product innovation has fueled a slow-burn growth story in annuities.

Supreme Court slaps down challenge to IRS summons for Coinbase user data
Supreme Court slaps down challenge to IRS summons for Coinbase user data

Crypto investor argues the federal agency's probe, upheld by a federal appeals court, would "strip millions of Americans of meaningful privacy protections."

Houston-based RIA Americana Partners adds $1B+ with former Morgan Stanley director
Houston-based RIA Americana Partners adds $1B+ with former Morgan Stanley director

Meanwhile in Chicago, the wirehouse also lost another $454 million team as a group of defectors moved to Wells Fargo.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.