In a commentary recently published in Ignites, Kramer Levin investment management partner George Silfen writes that the Expanding Investment Opportunities Act (H.R. 4279) must address a current rule under the Investment Advisers Act of 1940 in order to expand investment opportunities for closed-end funds, as desired. The bill, which passed the House by an overwhelming 418 to 2 vote, would direct the SEC to revise its rules to enable closed-end companies to use the securities offering and proxy rules currently available to other issuers of securities. However, Silfen argues that a simple modification to the legislation would remove a key limitation and stimulate increased activity in the closed-end fund IPO market.

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