Title: Expanding Investment in Small Businesses Act of 2019
Policy area: Finance and Financial Sector

Summary:
Expanding Investment in Small Businesses Act of 2019
This bill directs the Securities and Exchange Commission to report on (1) the limitiation on shares of an individual company that a diversified investment company may own, and (2) the limitation's impact on capital formation.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3050 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 3050

To require the Securities and Exchange Commission to carry out a study 
of the 10 per centum threshold limitation applicable to the definition 
of a diversified company under the Investment Company Act of 1940, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 30, 2019

  Mr. Steil introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To require the Securities and Exchange Commission to carry out a study 
of the 10 per centum threshold limitation applicable to the definition 
of a diversified company under the Investment Company Act of 1940, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Expanding Investment in Small 
Businesses Act of 2019''.

SEC. 2. SEC STUDY.

    (a) In General.--The Securities and Exchange Commission shall carry 
out a study of the 10 per centum threshold limitation applicable to the 
definition of a diversified company under section 5(b)(1) of the 
Investment Company Act of 1940 (15 U.S.C. 80a-5(b)(1)) and determine 
whether such threshold limits capital formation.
    (b) Considerations.--In carrying out the study required under 
subsection (a), the Commission shall consider the following:
            (1) The size and number of diversified companies that are 
        currently restricted in their ability to own more than 10 
        percent of the voting shares in an individual company.
            (2) If investing preferences of diversified companies have 
        shifted away from companies with smaller market 
        capitalizations.
            (3) The expected increase in the availability of capital to 
        small and emerging growth companies if the threshold is 
        increased.
            (4) The ability of registered funds to manage liquidity 
        risk.
            (5) Any other consideration that the Commission considers 
        necessary and appropriate for the protection of investors.
    (c) Solicitation of Public Comments.--In carrying out the study 
required under subsection (a), the Commission may solicit public 
comments.
    (d) Report.--Not later than the end of the 180-day period beginning 
on the date of enactment of this Act, the Commission shall issue a 
report to the Congress, and make such report publicly available on the 
website of the Commission, containing--
            (1) all findings and determinations made in carrying out 
        the study required under subsection (a); and
            (2) any legislative recommendations of the Commission, 
        including any recommendation to update the 10 per centum 
        threshold.
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