Bill > S3671

This bill, titled the "Increasing Investor Opportunities Act," aims to amend the Investment Company Act of 1940 to grant closed-end companies, which are investment companies with a fixed number of shares that trade on exchanges, greater authority to invest in private funds. Private funds are typically investment pools not registered with the Securities and Exchange Commission (SEC) and are often used by sophisticated investors. The bill explicitly states that the SEC cannot prohibit or limit a closed-end company from investing any or all of its assets in securities issued by private funds, nor can it impose conditions on the sale or listing of securities of such closed-end companies on national exchanges, unless these restrictions are unrelated to the nature of the private fund itself. The bill also clarifies that this expanded authority applies to closed-end companies that elect to be treated as business development companies, and it incorporates the definition of "private fund" from the Investment Advisers Act of 1940. Importantly, the bill includes provisions to ensure that these changes do not alter existing fiduciary duties owed to closed-end companies or their investment advisers, nor do they affect the valuation, liquidity, or redemption requirements of these companies.

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https://www.congress.gov/bill/119th-congress/senate-bill/3671/all-info