Access to Small Business Investor Capital Act
This bill allows mutual funds and exchange-traded funds (ETFs) to leave out the operating expenses of business development companies—firms that lend to and invest in small and mid-sized businesses—from their required fee disclosure tables. Currently, funds that buy shares in these business development companies must report those internal costs as their own fees, which artificially raises the fund's public price tag. Changing this rule makes these investment funds appear cheaper to potential buyers and removes a barrier for funds seeking to invest in small business finance.
What this bill touches.
Who it helps · who it burdens.
Who it helps
- Registered investment companiesSection 2(b) allows registered investment companies to exclude indirect fees and expenses from investments in business development companies when calculating and reporting Acquired Fund Fees and Expenses on their registration statements.
- Business development companiesSection 2(b) excludes expenses from investments in business development companies from being counted in registered investment companies' Acquired Fund Fees and Expenses disclosures.
The provisions, in plain language.
Allows registered investment companies to exclude indirect fees and expenses related to investments in business development companies when calculating and disclosing Acquired Fund Fees and Expenses on registration statements.