Bill Summary
This legislation, known as the "Access to Small Business Investor Capital Act", requires the Securities and Exchange Commission (SEC) to revise their rules to exclude business development companies from being included in the reporting of certain fees and expenses for "Acquired Funds". If the SEC does not make these revisions within a 2-year period, any references to "Acquired Funds" in their rules will be considered to not include business development companies. The legislation defines "business development company" as a company under the Investment Company Act of 1940. It also clarifies that any references to forms or terms in this legislation will also include their successors as determined by the SEC.
Possible Impacts
1. Increased access to capital for small businesses: The "Access to Small Business Investor Capital Act" could potentially provide easier access to capital for small businesses through the exclusion of business development companies from certain reporting requirements. This could benefit individuals who are looking to start or grow their small businesses.
2. Potential changes in investment strategies: Business development companies are typically involved in venture capital and private equity investments, so their exclusion from certain reporting requirements could lead to changes in investment strategies for these companies. This could potentially affect individuals who have invested in these types of companies.
3. Regulatory compliance and enforcement: The legislation requires the Securities and Exchange Commission to revise rules and could potentially lead to changes in regulations and enforcement. This could affect individuals who work in the financial industry or companies that are subject to these regulations.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7375 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 7375
To require the Securities and Exchange Commission to revise rules to
exclude business development companies from certain ``Acquired Fund
fees and expenses'' reporting, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 25, 2020
Mr. Sherman (for himself and Mr. Stivers) introduced the following
bill; which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To require the Securities and Exchange Commission to revise rules to
exclude business development companies from certain ``Acquired Fund
fees and expenses'' reporting, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Access to Small Business Investor
Capital Act''.
SEC. 2. EXCLUDING BUSINESS DEVELOPMENT COMPANIES FROM CERTAIN
``ACQUIRED FUND FEES AND EXPENSES'' REPORTING.
(a) Revision to Rules.--Not later than the end of the 2-year period
beginning on the date of enactment of this Act, the Securities and
Exchange Commission shall revise any rule of the Commission relating to
investment company registration statements to specify that, when
calculating the fees and expenses of an Acquired Fund, the term
``Acquired Fund'' does not include a business development company.
(b) Failure To Issue Rules.--If the Commission does not make the
revisions required under subsection (a) before the end of the 2-year
period described in subsection (a), any reference to an Acquired Fund
in a rule of the Commission relating to investment company registration
statements (including in any item in or instruction to Forms N-1A, -2,
-3, -4, and -6) shall, when used in the context of calculating the fees
and expenses of an Acquired Fund, be deemed to not include a business
development company.
(c) Business Development Company Defined.--In this section, the
term ``business development company'' has the meaning given that term
under section 2(a) of the Investment Company Act of 1940 (15 U.S.C.
80a-2(a)).
(d) Rules of Construction.--Any reference in this section to--
(1) a form means such form and any successor form; and
(2) the terms ``Acquired Fund Fees and Expenses'' and
``Acquired Fund'' defined or otherwise used in such a form
shall mean any successor terms or provisions adopted by the
Securities and Exchange Commission.
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