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H.R. 4279 (115th): Expanding Investment Opportunities Act


The text of the bill below is as of Jan 18, 2018 (Referred to Senate Committee). The bill was not enacted into law.

Summary of this bill

Source: Republican Policy Committee

H.R. 4279 directs the Securities and Exchange Commission (SEC) to amend its rules to enable closed-end funds that meet certain requirements to be considered “well-known seasoned issuers” (WKSIs) and to conform the filing and offering regulations for closed-end funds to those of traditional operating companies—which will simplify the registration process and enable these funds to more easily provide information to investors.

Closed-end funds are types of investment companies whose shares are listed on a stock exchange or are traded in the over-the-counter market. A registered closed-end fund is created by issuing a fixed number of common shares to investors during an initial public offering. Closed-end funds are important retirement savings …


IIB

115th CONGRESS

2d Session

H. R. 4279

IN THE SENATE OF THE UNITED STATES

January 18, 2018

Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs

AN ACT

To direct the Securities and Exchange Commission to revise any rules necessary to enable closed-end companies to use the securities offering and proxy rules that are available to other issuers of securities.

1.

Short title

This Act may be cited as the Expanding Investment Opportunities Act.

2.

Parity for closed-end companies regarding offering and proxy rules

(a)

Revision to rules

Not later than the end of the 180 period beginning on the date of enactment of this Act, the Securities and Exchange Commission shall propose and, not later than 1 year after the date of enactment of this Act, the Securities and Exchange Commission shall finalize any rules, as appropriate, to allow any closed-end company, as defined in section 5(a)(2) of the Investment Company Act of 1940 (15 U.S.C. 80a–5), that is registered as an investment company under such Act, and is listed on a national securities exchange or that makes periodic repurchase offers pursuant to section 270.23c–3 of title 17, Code of Federal Regulations, to use the securities offering and proxy rules, subject to conditions the Commission determines appropriate, that are available to other issuers that are required to file reports under section 13 or section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m; 78o(d)). Any action that the Commission takes pursuant to this subsection shall consider the availability of information to investors, including what disclosures constitute adequate information to be designated as a well-known seasoned issuer.

(b)

Treatment if revisions not completed in a timely manner

If the Commission fails to complete the revisions required by subsection (a) by the time required by such subsection, any registered closed-end company that is listed on a national securities exchange or that makes periodic repurchase offers pursuant to section 270.23c–3 of title 17, Code of Federal Regulations, shall be deemed to be an eligible issuer under the final rule of the Commission titled Securities Offering Reform (70 Fed. Reg. 44722; published August 3, 2005).

(c)

Rules of construction

(1)

No effect on Rule 482

Nothing in this section or the amendments made by this section shall be construed to impair or limit in any way a registered closed-end company from using section 230.482 of title 17, Code of Federal Regulations, to distribute sales material.

(2)

References

Any reference in this section to a section of title 17, Code of Federal Regulations, or to any form or schedule means such rule,


section, form, or schedule, or any successor to any such rule, section, form, or schedule.

Passed the House of Representatives January 17, 2018.

Karen L. Haas,

Clerk