This bill modifies Securities and Exchange Commission (SEC) rules for registered investment companies to allow them to exclude certain fees from their reported expenses. Specifically, when investment companies invest in business development companies (BDCs)—specialized firms that provide funding to small and mid-sized businesses—they can now omit the indirect fees and expenses they pay to those BDCs from their overall fee disclosures to investors. The change applies to the fee tables that investment companies must include in their SEC registration statements. The bill aims to make investment in small businesses appear less expensive to potential investors by reducing the displayed fee burden, though the actual fees paid to BDCs would still exist but simply not be disclosed in the same manner. No specific funding or implementation timeline is specified in the legislation, which was introduced in May 2025 and referred to the Senate Banking Committee.
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