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RIC controlled group regulations: Are you in compliance?

In September 2015, the IRS issued final regulations that clarified its position with respect to the 25% controlled group asset diversification test for regulated investment companies (RICs) as defined in IRC Section 851, and Rev. Proc. 2015-452, which provides safe harbors for “fund-of-fund structures.” The final regulations are generally applied prospectively, whereas the Revenue Procedure is applied prospectively.

This article discusses the background of the RIC asset diversification qualification requirements, the impact of the final controlled group regulations on the RIC asset diversification requirements as clarified by the IRS, and the safe harbor provisions under Rev. Proc. 2015-45.

Read more to see if your organization is in compliance with the RIC controlled group regulations.