This bill would allow registered investment companies to exclude certain fees from their reported investment costs when calculating what's called "acquired fund fees and expenses." Specifically, investment companies could omit fees they indirectly incur from investing in business development companies, which are specialized investment firms that provide capital to small and medium-sized businesses. Instead of including these fees in the main cost calculation, companies would disclose them separately in a footnote to their fee table. The change applies to the official disclosure forms that investment companies file with the Securities and Exchange Commission. Proponents argue this change will make it easier for small businesses to access investor capital by reducing the appearance of high fees associated with these investments, potentially encouraging more investment in small business development companies.
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