The Investment Company Institute (ICI) has been trying to convince lawmakers to take tax advantages away from exchange traded notes (ETNs). But Thomas Humphreys, a partner at Morrison & Foerster LLP in New York, said at a conference that this issue isn’t likely to be settled in 2008.

Jeff Benjamins for Investment News explains this all started when Richard E. Neal introduced federal legislation that would end tax deferrals for ETNs. Foreign currency ETNs lost their tax breaks last December.

Not only are ETNs tax treatment under scrutiny, all investment products tax advantages are under debate. The IRS has opened up debate for the public comment until May 15, but the mutual
fund industry, which attempted to take a swat at ETNs, has actually
shot itself and the entire "global derivatives market" right in the

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