Increasing Investor Opportunities Act
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To President
- Became Law
Overview
The Increasing Investor Opportunities Act amends the Investment Company Act of 1940 to allow closed-end companies greater flexibility in investing in private funds. Specifically, it removes restrictions on closed-end companies investing in these funds and clarifies the definition of ‘private fund’ to align with the Investment Advisers Act. It also updates the Securities Exchange Act of 1934 to permit national securities exchanges to list and trade the securities of closed-end companies that invest in private funds, subject to consistent rules. Finally, it modifies provisions related to investment limitations for closed-end companies.
Key provisions
- Allows closed-end companies to invest in securities issued by private funds without prior Commission prohibition.
- Defines ‘private fund’ using the definition from the Investment Advisers Act of 1940.
- Permits national securities exchanges to list and trade securities of closed-end companies investing in private funds.
- Modifies investment limitations for closed-end companies.
- Allows closed-end companies to elect to be treated as business development companies.
- Clarifies definitions related to closed-end companies and private funds within the relevant statutes.
Who is affected
- Closed-end companies
- Private fund investors
- Investment companies
- Securities exchanges
- Investment advisers
Notable changes
Bill text
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Sponsors
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3 on record
Primary sponsor
Cosponsors
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