House Financial Services Committee Holds Hearing on Access to Capital

The House Financial Services Subcommittee on Capital Markets held a hearing in February titled, “The Future of American Capital: Strengthening Public and Private Markets by Increasing Investor Access and Facilitating Capital Formation.” The hearing focused on the definition of an accredited investor, capital formation for small businesses, extending retail investor access to private markets, and the role of Business Development Companies (BDCs), among other topics. Subcommittee Chair Ann Wagner (R-MO) noted that Acting SEC Chair Uyeda said, “we should be encouraging, not restricting, the ability of companies to raise capital.” Ranking Member Brad Sherman (D-CA) stated BDCs play an important role in helping smaller businesses thrive. During the hearing the Subcommittee examined several legislative measures including the Increasing Investor Opportunities Act which would allow closed-end funds to increase investments in private funds.

Click here to watch an archived video of the House Financial Services hearing.