TY  - JOUR
AB  - Purpose To analyze the recent SEC no-action relief allowing a non-US investment company to invest as a feeder fund in a US registered open-end management investment company without complying with all of the conditions of Section 12(d)(1)(E) of the Investment Company Act of 1940.Design/methodology/approach This article discusses the various conditions that a non-US investment company investing as a foreign feeder in a US registered open-end management investment company must satisfy in order to avoid complying with certain provisions of Section 12(d)(1)(E) of the Investment Company Act of 1940. In addition, the article analyzes certain potential tax and regulatory challenges facing firms seeking to rely on the relief.Findings This article concludes that the SEC no-action relief is an incremental step in reducing barriers to global distribution of US registered funds and may marginally increase the use of cross-border master-feeder arrangements as contemplated by the no-action letter. Nevertheless, this article cautions that significant impediments to global distribution of US registered funds remain, including tax withholding and non-US law issues.Originality/value This article contains valuable information about the regulatory impediments to global distribution of US registered funds, as well as learned assessments of the impact of recent developments in this space by experienced securities lawyers.
VL  - 18
IS  - 3
SN  - 1528-5812
DO  - 10.1108/JOIC-06-2017-0038
UR  - https://doi.org/10.1108/JOIC-06-2017-0038
AU  - Amorosi Mark
AU  - Zornada George
AU  - Gibson Todd
AU  - Almquist Joel
AU  - Man Pablo J.
PY  - 2017
Y1  - 2017/01/01
TI  - Cross border master-feeder arrangements: SEC staff slightly expands utility of offshore feeders for global investment management firms, but tax and other challenges remain
T2  - Journal of Investment Compliance
PB  - Emerald Publishing Limited
SP  - 16
EP  - 20
Y2  - 2024/04/25
ER  -