The pace and intricacies of regulatory change in the investment industry are, at times, nothing short of overwhelming. Yet, organizations in this space need to have a clear understanding of evolving regulations, their timing and overall impact.
To help you stay up to date, below is Cohen & Co’s quarterly recap of the latest developments at a variety of regulatory agencies likely to impact our clients.
This ASU enhances the transparency and decision-usefulness of income tax disclosures for public business entities. Effective for annual periods beginning after December 15, 2024, the standard is designed to give investors clearer insight into tax-related risks, planning strategies and the cash flow effects of income taxes. Key provisions require more detailed rate reconciliation disclosures and disaggregation of income taxes paid by jurisdiction, increasing visibility into how and where entities incur tax obligations. While the guidance primarily targets public companies, certain funds with significant withholding taxes or foreign capital gains taxes may need to evaluate the expanded disclosure expectations.
>> Our Take: While many entities’ financial statements will not be materially affected by this ASU, it still may require enhanced data gathering and presentation processes to support more granular tax footnote disclosures, particularly for multinational tax exposures.
The SEC has extended the compliance timeline for amendments to the Investment Company Names Rule (Rule 35d-1) and related disclosure and reporting requirements originally adopted in September 2023. Larger fund groups with $1 billion or more in net assets now have until June 11, 2026, to comply, while smaller fund groups have until December 11, 2026. The revised timeline aligns compliance with certain annual disclosure and reporting cycles tied to a fund’s fiscal year-end.
>> Our Take: While funds gain additional time to evaluate naming compliance and update related disclosures, they should consider using the extension to assess portfolio alignment, documentation and reporting readiness.
Contact Bryan Friedmann or a member of your service team to discuss this topic further.
In this blog Cohen & Co is not rendering legal, accounting, investment, tax or other professional advice. Rather, the information contained in this blog is for general informational purposes only. Any decisions or actions based on the general information contained in this blog should be made or taken only after a detailed review of the specific facts, circumstances and current law with your professional advisers.