To amend the Investment Company Act of 1940 to prohibit limitations on closed-end companies investing in private funds, and for other purposes.
Sponsors
Legislative Progress
ReportedAdditional sponsors: Mr. Torres of New York, Mr. David Scott …
Reported with an amendment, committed to the Committee of the …
Mrs. Wagner (for herself and Mr. Meeks) introduced the following …
Summary
What This Bill Does
Prohibits SEC from limiting closed-end investment companies from investing in private funds like hedge funds and private equity. Opens retail access to alternative investments.
Who Benefits and How
Retail investors gain access to private fund investments through closed-end funds. Private fund managers gain new investor capital. Closed-end fund industry expands investment options.
Who Bears the Burden and How
SEC loses ability to restrict risky private fund access. Retail investors face complex and illiquid investment risks. Investor protection potentially reduced.
Key Provisions
- Bars SEC from prohibiting closed-end fund private investments
- Allows listing on national securities exchanges
- Applies to business development companies as well
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
Prohibits SEC from limiting closed-end funds from investing in private funds
Policy Domains
Legislative Strategy
"Expand retail access to private investments"
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "commission"
- → SEC
Key Definitions
Terms defined in this bill
per Investment Advisers Act section 202(a)
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology