Unavoidable Change On the Horizon: Breaking Down Topic 606

Accounting Standards Codification 606, Revenue from Contracts with Customers, (Topic 606) will require significant accounting changes for many asset managers. Many of the fee arrangements under which asset managers provide services to investment companies will need to be re-evaluated under Topic 606, specifically:

  • Base management fees and related fee waivers and expense caps
  • Incentive or performance fees, including carried interest
  • Distribution and related fees

More information on this topic is available here.