Increasing Investor Opportunities Act

Bill: 117-s-3948
Sponsor: full_name: Sen. Daines, Steve [R-MT]
Introduced: 2022-03-29
Policy area: Finance and Financial Sector
Subjects: Banking and financial institutions regulation

Financial services and investments

Securities
Latest action: action_date: 2022-04-05
text: Committee on Banking, Housing, and Urban Affairs. Hearings held.

Summaries:
action_date: 2022-03-29
action_desc: Introduced in Senate
text: <p><b>Increasing Investor Opportunities Act </b></p> <p>This bill allows a closed-end fund&#8212;a portfolio of pooled assets with a limited number of shares traded on an exchange&#8212;to increase their investments in private investment funds. </p>

tv_txt: II 117th CONGRESS 2d Session S. 3948 IN THE SENATE OF THE UNITED STATES March 29, 2022 Mr. Daines introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To amend the Investment Company Act of 1940 to prohibit limitations on closed-end companies investing in private funds, and for other purposes.

1. Short title This Act may be cited as the Increasing Investor Opportunities Act . 2. Closed-end company authority to invest in private funds (a) In general Section 5 of the Investment Company Act of 1940 ( 15 U.S.C. 80a–5 ) is amended by adding at the end the following: (d) Closed-End company authority To invest in private funds (1) In general The Commission may not limit a closed-end company from investing any or all of the assets of the company in a private fund solely or primarily because of the status of the fund as a private fund. (2) Application Notwithstanding section 6(f), this subsection shall apply to a closed-end company that elects to be treated as a business development company pursuant to section 54. . (b) Definition of private fund (1) Investment Company Act of 1940 Section 2(a) of the Investment Company Act of 1940 ( 15 U.S.C. 80a–2(a) ) is amended by adding at the end the following: (55) The term private fund means an issuer that would be an investment company but for the exception provided for in paragraph (1) or (7) of section 3(c). . (2) Investment Advisers Act of 1940 Section 202(a) of the Investment Advisers Act of 1940 ( 15 U.S.C. 80b–2(a) ) is amended— (A) by redesignating the second paragraph (29) (relating to commodity pool and other terms) as paragraph (31); and (B) by amending paragraph (29) to read as follows: (29) The term private fund has the meaning given the term in section 2(a) of the Investment Company Act of 1940 ( 15 U.S.C. 80a–2(a) ). . (c) Treatment by national securities exchanges Section 6(b) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78f(b) ) is amended by adding at the end the following: (11) (A) The rules of the exchange do not prohibit the listing or trading of securities of a closed-end company by reason of the amount of the investment by the company of assets in private funds. (B) In this paragraph— (i) the term closed-end company — (I) has the meaning given the term in section 5(a) of the Investment Company Act of 1940 ( 15 U.S.C. 80a–5(a) ); and (II) includes a closed-end company that elects to be treated as a business development company under section 6(f) of the Investment Company Act of 1940 ( 15 U.S.C. 80a–6(f) ); and (ii) the term private fund has the meaning given the term in section 2(a) of the Investment Company Act of 1940 ( 15 U.S.C. 80a–2(a) ). . (d) Investment limitation Section 3(c) of the Investment Company Act of 1940 ( 15 U.S.C. 80a–3(c) ) is amended— (1) in paragraph (1), in the matter preceding subparagraph (A), in the second sentence, by striking subparagraphs (A)(i) and (B)(i) and inserting subparagraphs (A)(i), (B)(i), and (C) ; and (2) in paragraph (7)(D), by striking subparagraphs (A)(i) and (B)(i) and inserting subparagraphs (A)(i), (B)(i), and (C) .