|Code Section||Effective Date||Name of Act||Name of Provision||10yr Revenue Estimate ($millions)|
|562||12/22/2010||Regulated Investment Company Modernization Act of 2010||Repeal of Preferential Dividend Rule for Publicly Offered RICs||Negligible|
Repeal of Preferential Dividend Rule for Publicly Offered RICs
Explanation of Provision
The provision repeals the preferential dividend rule for publicly offered RICs. For this purpose, a RIC is publicly offered if its shares are (1) continuously offered pursuant to a public offering, (2) regularly traded on an established securities market, or (3) held by
no fewer than 500 persons at all times during the taxable year.