House Advances Closed-End Fund Bill, Obstacles Remain

On Friday, March 8 the U.S. House of Representatives advanced a package of bills titled “Expanding Access to Capital Act of 2023” (H.R. 2799) by a party line vote, 212-205. The package of bills included provisions on the definition of accredited investor, retirement, electronic delivery, dealers, and other measures. In addition to the package of bills, several amendments were offered on the House Floor as part of the package, including the “Increasing Investor Opportunities Act” sponsored by Capital Markets Subcommittee Chairman Ann Wagner (R-MO). The bill would allow a closed-end fund to invest its assets more freely in securities issued by private funds as well as making it more difficult for activist funds to takeover a listed closed-end fund. The vote on the closed-end fund amendment garnered some Democratic support, in a 270-154 vote. Action on the bill is now required by the U.S. Senate, including the Senate Banking Committee. Movement in the Senate is in question due to calendar constraints and House Democrats icy reception of the full package.

Click here to read a press release on the passage of H.R. 2799 from Committee Chairman Patrick McHenry (R-NC).
Click here to read the amendment on closed-end funds offered by Subcommittee Chairman Wagner.