what is regulated investment company
regulated investment company. An investment company that meets certain standards and, as a result, does not have to pay federal income taxes on distributions of dividends, interest, and realized capital gains. Essentially, this income is passed through to the stockholders, who, in turn, are taxed.To qualify as a regulated investment company a firm must derive at least 90% of its income from dividends, interest, and capital gains.ssentially, this income is passed through to the stockholders, who, in turn, are taxed. To qualify as a regulated investment company a firm must derive at least 90% of its income from dividends, interest, and capital gains.