HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.
![handle is hein.congrecreports/crptxabpc0001 and id is 1 raw text is: AUTHENTICATEO
U.S. GOVERNMENT
INFORMATION
Op
115TH CONGRESS REPORT
2d Session HOUSE OF REPRESENTATIVES 115-878
EXPANDING INVESTMENT IN SMALL BUSINESSES ACT
JULY 31, 2018.-Committed to the Committee of the Whole House on the State of
the Union and ordered to be printed
Mr. HENSARLING, from the Committee on Financial Services,
submitted the following
REPORT
[To accompany H.R. 6319]
[Including cost estimate of the Congressional Budget Office]
The Committee on Financial Services, to whom was referred the
bill (H.R. 6319) to require the Securities and Exchange Commission
to carry out a study of the 10 per centum threshold limitation ap-
plicable to the definition of a diversified company under the Invest-
ment Company Act of 1940, and for other purposes, having consid-
ered the same, report favorably thereon without amendment and
recommend that the bill do pass.
PURPOSE AND SUMMARY
On July 10, 2018, Representative Randy Hultgren introduced
H.R. 6319, the Expanding Investment in Small Businesses Act to
requires the U.S. Securities and Exchange Commission (SEC) to
study the current diversified fund limit threshold for diversified
mutual funds-10 percent of the voting shares in an individual
company-and determine whether such threshold limits capital for-
mation. The SEC is to report its findings to Congress and then rec-
ommend whether Congress should amend the Investment Company
Act of 1940. To conduct this study, the SEC may take public com-
ments, and shall issue a report of its findings to Congress-includ-
ing any legislative recommendations to increase the 10 percent
threshold-within 180 days of enactment.
BACKGROUND AND NEED FOR LEGISLATION
In the April 26, 2018 report released by the Center for Capital
Markets Competitiveness at U.S. Chamber of Commerce, the Amer-
ican Securities Association, the Biotechnology Innovation Associa-
tion, the Equity Dealers of America, SIFMA, TECHNET, NASDAQ
79-006](ViewImageLocal?handle=hein.congrecreports/crptxabpc0001&div=1&collection=&method=preview&ext=.png&size=3)