[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3383 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 3383

    To amend the Investment Company Act of 1940 with respect to the 
     authority of closed-end companies to invest in private funds.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 14, 2025

Mrs. Wagner (for herself, Mr. Meeks, Mr. Torres of New York, Mr. David 
  Scott of Georgia, and Mr. Sessions) introduced the following bill; 
       which was referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
    To amend the Investment Company Act of 1940 with respect to the 
     authority of closed-end companies to invest in private funds.

    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.--Except 
        as otherwise prohibited or restricted by this Act (or any rule 
        issued under this Act), the Commission may not impose any 
        condition on, restrict, or otherwise limit--
                    ``(A) 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
                    ``(B) the listing of the securities of a closed-end 
                company described in subparagraph (A) on a national 
                securities exchange.
            ``(3) Unrelated restrictions.--The Commission may impose a 
        condition on, restrict, or otherwise limit an activity 
        described in paragraph (1) or subparagraph (A) or (B) of 
        paragraph (2) 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.
            ``(4) 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 subsection--
            ``(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 in 
        section 202(a) of the Investment Advisers Act of 1940 (15 
        U.S.C. 80b-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 section or the amendments made by this 
        section 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 section or the amendments made by this 
        section 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.
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