What This Bill Does
This bill allows registered investment companies to leave certain fees out of their fee calculations when those fees come from investing in business development companies. Instead of including these fees in the main calculation, companies would explain them in a footnote.
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Who It Affects
Registered investment companies (investment companies registered with the Securities and Exchange Commission)
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Key Provisions
• Registered investment companies may omit certain fees from their Acquired Fund Fees and Expenses calculation when those fees come indirectly from investing in business development company shares (Sec. 2(b)(1))
• Companies must instead disclose the omitted fees in a footnote to the Fee Table Disclosure, calculated using the same formula as Acquired Fund Fees and Expenses (Sec. 2(b)(2))
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What Changes
Investment companies gain the option to report business development company fees separately instead of including them in their main fee calculations on registration statements filed with regulators.
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Important Definitions
• Acquired Fund: Defined in Forms N-1A, N-2, and N-3
• Registered Investment Company: An investment company registered with the Securities and Exchange Commission under the Investment Company Act of 1940
• Business Development Company: Defined in section 2(a) of the Investment Company Act of 1940
• Fee Table Disclosure: The fee table in Item 3 of Form N-1A, Item 3 of Form N-2, or Item 4 of Form N-3
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Effective Date
Not specified in bill text
I
118TH CONGRESS
1ST SESSION H. R. 1379
To permit a registered investment company to omit certain fees from the
calculation of Acquired Fund Fees and Expenses, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 7, 2023
Mr. SHERMAN (for himself and Mr. HUIZENGA) introduced the following bill;
which was referred to the Committee on Financial Services
A BILL
To permit a registered investment company to omit certain
fees from the calculation of Acquired Fund Fees and
Expenses, and for other purposes.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Access to Small Busi-
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ness Investor Capital Act’’.
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SEC. 2. AMENDMENTS TO ACQUIRED FUND FEES AND EX-
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PENSES REPORTING ON INVESTMENT COM-
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PANY REGISTRATION STATEMENTS.
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(a) DEFINITIONS.—In this section:
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•HR 1379 IH
(1) ACQUIRED
FUND.—The term ‘‘Acquired
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Fund’’ has the meaning given the term in Forms N–
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1A, N–2, and N–3.
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(2) ACQUIRED FUND FEES AND EXPENSES.—
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The term ‘‘Acquired Fund Fees and Expenses’’
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means the Acquired Fund Fees and Expenses sub-
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caption in the Fee Table Disclosure.
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(3) BUSINESS DEVELOPMENT COMPANY.—The
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term ‘‘business development company’’ has the
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meaning given the term in section 2(a) of the Invest-
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ment Company Act of 1940 (15 U.S.C. 80a–2(a)).
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(4) FEE TABLE DISCLOSURE.—The term ‘‘Fee
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Table Disclosure’’ means the fee table described in
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Item 3 of Form N–1A, Item 3 of Form N–2, or
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Item 4 of Form N–3 (as applicable, and with respect
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to each, in any successor fee table disclosure that
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the Securities and Exchange Commission adopts).
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(5) FORM
N–1A.—The term ‘‘Form N–1A’’
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means the form described in section 274.11A of title
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17, Code of Federal Regulations, or any successor
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regulation.
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(6) FORM N–2.—The term ‘‘Form N–2’’ means
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the form described in section 274.11a–1 of title 17,
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Code of Federal Regulations, or any successor regu-
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lation.
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•HR 1379 IH
(7) FORM N–3.—The term ‘‘Form N–3’’ means
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the form described in section 274.11b of title 17,
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Code of Federal Regulations, or any successor regu-
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lation.
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(8) REGISTERED INVESTMENT COMPANY.—The
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term ‘‘registered investment company’’ means an in-
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vestment company, as defined under section 2(a) of
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the Investment Company Act of 1940, registered
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with the Securities and Exchange Commission under
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such Act.
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(b) EXCLUDING BUSINESS DEVELOPMENT COMPA-
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NIES FROM ACQUIRED FUND FEES AND EXPENSES.—A
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registered investment company may, on any investment
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company registration statement filed pursuant to section
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8(b) of the Investment Company Act of 1940 (15 U.S.C.
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80a–8(b))—
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(1) omit from the calculation of Acquired Fund
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Fees and Expenses those fees and expenses that the
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investment company incurred indirectly as a result
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of investment in shares of one or more Acquired
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Funds that is a business development company; and
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(2) instead disclose in a footnote to the Fee
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Table Disclosure those fees and expenses that para-
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•HR 1379 IH
graph (1) describes, calculated according to the Ac-
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quired Fund Fees and Expenses formula.
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Æ
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