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Code · BILL · 118th Congress · S. 5139 (Introduced in Senate) — To amend the Securities Act of 1933 to address emerging growth companies, and for other purposes. · Sec. 204

Sec. 204. Increasing investor opportunities

525 words·~2 min read·/bill/118/s/5139/is/section-204·

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Section 5 of the Investment Company Act of 1940 ( 15 U.S.C. 80a–5 ) is amended by adding at the end the following: Except as otherwise prohibited or restricted by this Act (or any rule issued under this Act), the Commission may not prohibit or otherwise limit a closed-end company from investing any or all of the assets of the closed-end company in securities issued by private funds. Except as otherwise prohibited or restricted by this Act (or any rule issued under this Act), or to the extent permitted by subparagraph (B), the Commission may not impose any condition on, restrict, or otherwise limit— the offer to sell, or the sale of, securities issued by a closed-end company that invests, or proposes to invest, in securities issued by private funds; or the listing of the securities of a closed-end company described in clause
(i)on a national securities exchange. The Commission may impose a condition on, restrict, or otherwise limit an activity described in clause
(i)or
(ii)of subparagraph
(A)if that condition, restriction, or limitation is unrelated to the underlying characteristics of a private fund or the status of a private fund as a private fund. 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. . 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: The term private fund has the meaning given the term in section 202(a) of the Investment Advisers Act of 1940 ( 15 U.S.C. 80b–2(a) ). . 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: Except as otherwise prohibited or restricted by the rules of the exchange in a manner that is consistent with section 5(d) of the Investment Company Act of 1940 ( 15 U.S.C. 80a–5(d) ), the exchange does not prohibit, condition, restrict, or impose any other limitation on the listing or trading of the securities of a closed-end company when the closed-end company invests, or may invest, some or all of the assets of the closed-end company in securities issued by private funds. In this paragraph— the term closed-end company — 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 includes a closed-end company that elects to be treated as a business development company pursuant to section 54 of the Investment Company Act of 1940 ( 15 U.S.C. 80a–53 ); and 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) ). . Section 3(c) of the Investment Company Act of 1940 ( 15 U.S.C. 80a–3(c) ) is amended— 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 in paragraph (7)(D), by striking subparagraphs (A)(i) and (B)(i) and inserting subparagraphs (A)(i), (B)(i), and
(C).
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7 references not yet in our index
  • 15 USC 80a–5
  • 15 USC 80a–2(a)
  • 15 USC 80b–2(a)
  • 15 USC 80a–5(d)
  • 15 USC 80a–5(a)
  • 15 USC 80a–53
  • 15 USC 80a–3(c)
Citation graph
cites case law
Sec. 204
Increasing investor opportunities
Cite15 USC 80a–5
Cite15 USC 80a–2(a)
Cite15 USC 80b–2(a)
Cite15 USC 80a–5(d)
Cite15 USC 80a–5(a)
Cites 8 · showing 6Cited by 0 across 0 sources
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