[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2627 Reported in House (RH)]
<DOC>
Union Calendar No. 252
118th CONGRESS
1st Session
H. R. 2627
[Report No. 118-312]
To amend the Investment Company Act of 1940 to prohibit limitations on
closed-end companies investing in private funds, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 13, 2023
Mrs. Wagner (for herself and Mr. Meeks) introduced the following bill;
which was referred to the Committee on Financial Services
December 12, 2023
Additional sponsors: Mr. Torres of New York, Mr. David Scott of
Georgia, and Mr. Nickel
December 12, 2023
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed
in italic]
[For text of introduced bill, see copy of bill as introduced on April
13, 2023]
_______________________________________________________________________
A BILL
To amend the Investment Company Act of 1940 to prohibit limitations on
closed-end companies investing in private funds, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Increasing Investor Opportunities
Act''.
SEC. 2. CLOSED-END COMPANY AUTHORITY TO INVEST IN PRIVATE FUNDS.
(a) In General.--Section 5 of the Investment Company Act of 1940
(15 U.S.C. 80a-5) is amended by adding at the end the following:
``(d) Closed-End Company Authority to Invest in Private Funds.--
``(1) In general.--Except as otherwise prohibited or
restricted by this Act (or any rule issued under this Act), the
Commission may not prohibit or otherwise limit a closed-end
company from investing any or all of the assets of the closed-
end company in securities issued by private funds.
``(2) Other restrictions on commission authority.--
``(A) In general.--Except as otherwise prohibited
or restricted by this Act (or any rule issued under
this Act) or to the extent permitted by subparagraph
(B), the Commission may not impose any condition on,
restrict, or otherwise limit--
``(i) the offer to sell, or the sale of,
securities issued by a closed-end company that
invests, or proposes to invest, in securities
issued by private funds; or
``(ii) the listing of the securities of a
closed-end company described in clause (i) on a
national securities exchange.
``(B) Unrelated restrictions.--The Commission may
impose a condition on, restrict, or otherwise limit an
activity described in clause (i) or (ii) of
subparagraph (A) if that condition, restriction or
limitation is unrelated to the underlying
characteristics of a private fund or the status of a
private fund as a private fund.
``(3) Application.--Notwithstanding section 6(f), this
subsection shall also apply to a closed-end company that elects
to be treated as a business development company pursuant to
section 54.''.
(b) Definition of Private Fund.--Section 2(a) of the Investment
Company Act of 1940 (15 U.S.C. 80a-2(a)) is amended by adding at the
end the following:
``(55) The term `private fund' has the meaning given in
section 202(a) of the Investment Advisers Act of 1940 (15
U.S.C. 80b-2(a)).''.
(c) Treatment by National Securities Exchanges.--Section 6 of the
Securities Exchange Act of 1934 (15 U.S.C. 78f) is amended by adding at
the end the following:
``(m)(1) Except as otherwise prohibited or restricted by rules of
the exchange that are consistent with section 5(d) of the Investment
Company Act of 1940 (15 U.S.C. 80a-5(d)), an exchange may not prohibit,
condition, restrict, or impose any other limitation on the listing or
trading of the securities of a closed-end company when the closed-end
company invests, or may invest, some or all of the assets of the
closed-end company in securities issued by private funds.
``(2) In this paragraph--
``(A) the term `closed-end company'--
``(i) has the meaning given the term in section
5(a) of the Investment Company Act of 1940 (15 U.S.C.
80a-5(a)); and
``(ii) includes a closed-end company that elects to
be treated as a business development company pursuant
to section 54 of the Investment Company Act of 1940 (15
U.S.C. 80a-53); and
``(B) the term `private fund' has the meaning given the
term in section 2(a) of the Investment Company Act of 1940 (15
U.S.C. 80a-2(a))).''.
(d) Investment Limitation.--Section 3(c) of the Investment Company
Act of 1940 (15 U.S.C. 80a-3(c)) is amended--
(1) in paragraph (1), in the matter preceding subparagraph
(A), in the second sentence, by striking ``subparagraphs (A)(i)
and (B)(i)'' and inserting ``subparagraphs (A)(i), (B)(i), and
(C)''; and
(2) in paragraph (7)(D), by striking ``subparagraphs (A)(i)
and (B)(i)'' and inserting ``subparagraphs (A)(i), (B)(i), and
(C)''.
(e) Rules of Construction.--
(1) Nothing in this Act or the amendments made by this Act
may be construed to limit or amend any fiduciary duty owed to a
closed-end company (as defined in section 5(a)(2) of the
Investment Company Act of 1940 (15 U.S.C. 80a-5(a)(2))) or by
an investment adviser (as defined under section 2(a) of the
Investment Company Act of 1940 (15 U.S.C. 80a-2(a))) to a
closed-end company.
(2) Nothing in this Act or the amendments made by this Act
may be construed to limit or amend the valuation, liquidity, or
redemption requirements or obligations of a closed-end company
(as defined in section 5(a)(2) of the Investment Company Act of
1940 (15 U.S.C. 80a-5(a)(2))) as required by the Investment
Company Act of 1940.
Union Calendar No. 252
118th CONGRESS
1st Session
H. R. 2627
[Report No. 118-312]
_______________________________________________________________________
A BILL
To amend the Investment Company Act of 1940 to prohibit limitations on
closed-end companies investing in private funds, and for other
purposes.
_______________________________________________________________________
December 12, 2023
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed