This bill expands the investment options available to closed-end investment companies by allowing them to invest in private funds, which are currently restricted or prohibited under federal securities law. The legislation amends the Investment Company Act of 1940 to prevent the Securities and Exchange Commission from blocking or limiting these investments, and it also prohibits stock exchanges from refusing to list securities of closed-end companies that invest in private funds. The bill applies to both standard closed-end companies and business development companies. The changes preserve existing regulations on fiduciary duties, valuation standards, and liquidity requirements, meaning investment advisers must still meet their legal obligations to investors and companies must maintain proper valuation practices regardless of their private fund holdings.
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