House Financial Services Committee Advances Six Bills During May Mark-Up

During a May mark-up, the House Financial Services Committee advanced six bills out of Committee with four of the six bills receiving some bipartisan support. Of note to directors of closed-end funds, the “Increasing Investor Opportunities Act,” (H.R. 2627) was advanced by a vote of 37-11. The bill’s sponsor Subcommittee on Capital Markets Chairwoman Ann Wagner (R-MO) noted the bill would allow retail investors better access to private markets while still offering the protections of a registered investment company. During his opening remarks, Committee Chairman Patrick McHenry (R-NC) stated the bill would remove an “arbitrary limit” on the number of assets a closed-end fund can invest in private funds. Two Democratic members of the Committee, Ranking Member Maxine Waters (D-CA) and Representative Al Green (D-TX), spoke out against the measure as drafted due to concerns with a lack of private market investment knowledge and sophistication. While the bill has bipartisan support, including four Democratic co-sponsors, its path to the House floor is not guaranteed. Additional bills the Committee advanced include:

• H.R. 3556 - “Increasing Financial Regulatory Accountability and Transparency Act”
• H.R. 3564 - “Middle Class Borrower Protection Act of 2023”
• H.R. 2622 - a bill to amend the Investment Advisers Act of 1940 to codify certain Securities and Exchange Commission no-action letters that exclude brokers and dealers compensated for certain research services from the definition of investment adviser, and for other purposes
• H.R. 1553 - “Helping Angels Lead Our Startups (HALOS) Act”
• H.R. 3063 - “Retirement Fairness for Charities and Educational Institutions Act”

Click here to watch the House Financial Services Committee’s May mark-up.