Bill > HR3383

This bill aims to expand investment opportunities for closed-end investment companies by modifying the Investment Company Act of 1940. Specifically, the bill prevents the Securities and Exchange Commission (SEC) from prohibiting or limiting closed-end companies from investing in private funds, which are investment vehicles typically only available to sophisticated or high-net-worth investors. The legislation ensures that the SEC cannot restrict the sale or listing of securities for closed-end companies that invest in private funds, with the only potential limitations being those unrelated to the fundamental characteristics of private funds. The bill also clarifies that this applies to both traditional closed-end companies and business development companies. Importantly, the legislation includes safeguards by stipulating that it does not alter existing fiduciary duties, valuation requirements, liquidity standards, or redemption obligations for these investment companies. By expanding these investment options, the bill aims to provide investors with more diverse and potentially more lucrative investment opportunities while maintaining important investor protections.

Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/3383/all-info