Summary

Lets investment funds leave out fees from business development companies (BDCs) when they calculate “Acquired Fund Fees and Expenses” (AFFE) on SEC registration statements. It also defines key terms by pointing to the Investment Company Act and the SEC’s registration forms. This change affects how expense information is shown to investors. It does not change the actual fees investors pay. Funds that invest in BDCs may show lower reported expense ratios on their filings because BDC-related fees would no longer be counted in AFFE.

• Defines AFFE and related terms by reference to the Investment Company Act and SEC forms.
• Allows investment companies to exclude BDC fees from AFFE in SEC registration statements.
• Limits changes to disclosure calculations; it does not change actual fees charged to investors.
• Applies through existing SEC forms and rules rather than creating a new filing system.
• May result in lower reported expense figures for funds investing in BDCs.
• Affects comparability of reported expenses between funds with and without BDC holdings.
• No new spending, taxes, or mandates on states or localities.
• Narrow, single-topic change focused on investment company disclosures.