Regulated Investment Company

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Regulated investment company

An investment company allowed to pass capital gains, dividends, and interest earned on fund investments directly to its shareholders so that it is taxed only at the personal level, and double taxation is avoided.

Regulated Investment Company

An investment company that does not pay taxes on its earnings. Mutual funds and closed-end investment companies are both regulated investment companies. RICs are able to escape corporate taxes because they profit from investments by shareholders and do not have any real operations. They are therefore able to pass profits to shareholders and avoid double taxation. In order to qualify as an RIC, a company must derive at least 90^ of its profits from investment activities.

regulated investment company

An investment company that meets certain standards and, as a result, does not have to pay federal income taxes on distributions of dividends, interest, and realized capital gains. Essentially, this income is passed through to the stockholders, who, in turn, are taxed. To qualify as a regulated investment company a firm must derive at least 90% of its income from dividends, interest, and capital gains. It also must distribute at least 90% of the dividends and interest received. It must have a minimum diversification of its assets.

Regulated Investment Company (Mutual Fund)

A company or trust that uses its capital to invest in other companies. The two principal types are closed-end and open-end mutual funds. Shares in closed-end mutual funds, some of which are listed on stock exchanges, are readily transferable on the open market and are bought and sold like other shares. Open-end funds sell their own new shares to investors, stand ready to buy back their old shares, and are not listed.
References in periodicals archive ?
Under the fund's current distribution policy, the fund intends to pay a minimum annual distribution of 10% of the average net asset value of the fund within a calendar year or an amount sufficient to satisfy the minimum distribution requirements of the Internal Revenue Code for regulated investment companies.
Under the fund's current distribution policy, the fund intends to pay a minimum annual distribution of 8% of the average net asset value of the fund within a calendar year or an amount sufficient to satisfy the minimum distribution requirements of the Internal Revenue Code for regulated investment companies.
In addition to the quarterly distributions, and in accordance with the minimum distribution requirements of the Internal Revenue Code for regulated investment companies, the Fund may pay an adjusting distribution in December which includes any additional income and net realized capital gains in excess of the quarterly distributions for that year.
It currently serves 21 per cent of the listed Co-operative Insurance segment for Saudi Arabia and 13 per cent of the CMA licensed and regulated Investment Companies.
8226; Establishments of controlled foreign corporations to gain commodity exposure without failing the IRS qualifying income requirement for regulated investment companies
Beacon Hill specializes in serving as the Principal Underwriter and Distributor; providing experienced professionals to serve as Fund Chief Compliance Officer and Chief Financial Officer (Treasurer): Consulting Services and Business Management and Governance services to regulated investment companies.
It includes information on the tax treatment of investment income and expenses for individual shareholders of mutual funds or other regulated investment companies, such as money market funds.
2009-42, the IRS has outlined a safe harbor for regulated investment companies (RICs) for purposes of the Sec.
government obligations received directly by New York taxpayers was always exempt from New York State taxes, such interest received indirectly through regulated investment companies was not.
44 The FIE Rules provide for special exemptions from the tax avoidance motive test for certain NREs (including Regulated Investment Companies and Real Estate Investment Trusts as defined under the U.
Corporations which have been DISC or regulated investment companies, real estate investment trusts and other such entities also do not qualify under Sec.

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