Business Development Company Modernization Act

Bill: 113-hr-1973
Sponsor: full_name: Rep. Mulvaney, Mick [R-SC-5]
Introduced: 2013-05-14
Policy area: Finance and Financial Sector
Subjects: Banking and financial institutions regulation

Business investment and capital

Financial services and investments

Securities

Small business
Latest action: action_date: 2013-10-23
text: Hearings Held by the Subcommittee on Capital Markets and Government Sponsored Enterprises Prior to Referral.

Summaries:
action_date: 2013-05-14
action_desc: Introduced in House
text: <p>Business Development Company Modernization Act - Amends the Investment Company Act of 1940 to allow business development companies to invest in: (1) a registered investment adviser or investment adviser to an investment company, or (2) an eligible portfolio company (generally, a small- or middle-market financial service company).</p>

tv_txt: I 113th CONGRESS 1st Session H. R. 1973 IN THE HOUSE OF REPRESENTATIVES May 14, 2013 Mr. Mulvaney introduced the following bill; which was referred to the Committee on Financial Services A BILL To permit business development companies to increase investments in small-and middle-market financial services companies and investment advisors.

1. Short title This Act may be cited as the Business Development Company Modernization Act . 2. Investments of business development companies The Investment Company Act of 1940 is amended— (1) in section 2(a)(46(B) ( 15 U.S.C. 80a–2(46)(B) ) by striking nor a company which would be an investment company except for the exclusion from the definition of investment company in section 3(c) of this title ; and (2) in section 60 ( 15 U.S.C. 80a–59 ) by striking except that the Commission shall not and inserting except that— (1) section 12 shall not apply to the purchasing, otherwise acquiring, or holding by a business development company of any security issued by, or any other interest in the business of, any person who is— (A) an investment adviser registered under title II of this Act or who is an investment adviser to an investment company; or (B) an eligible portfolio company as defined in section 2(a)(46) ( 15 U.S.C. 80a–2(a)(46) ); and (C) the Commission shall not .