This bill aims to let more exchange-traded, closed-end funds invest in private investment funds, which could expand the choices these funds offer their shareholders. A closed-end fund is a pooled fund with a set number of shares that trade on a stock exchange. The bill tells the Securities and Exchange Commission (SEC) it cannot block or limit these funds from putting their assets into private funds, nor can it block the sale or exchange listing of these funds just because they invest in private funds. Stock exchanges also may not refuse to list or trade these funds for that reason.

The bill says this also covers business development companies (BDCs). It keeps key investor protections in place: it does not change fiduciary duties or the rules on valuing assets, liquidity, or redemptions. The SEC may still set limits that are unrelated to a fund being “private,” and the term “private fund” uses the existing definition in securities law .

• Who is affected: Closed-end funds and BDCs, their investors, the SEC, and national stock exchanges .
• What changes: The SEC and exchanges cannot block these funds from investing in private funds or from selling/listing shares for that reason; core investor protections remain in place .
• When: No specific start date is stated in the provided text .