15-05-2025
ICI Applauds Reintroduction of House Bill to Protect Investors and Expand Private Market Access
WASHINGTON, May 15, 2025 /PRNewswire/ -- Today, Investment Company Institute (ICI) President and CEO Eric Pan released the following statement on the reintroduction in the US House of Representatives of legislation to protect closed-end funds (CEFs) and their investors. The Increasing Investor Opportunities Act, was cosponsored by Reps. Ann Wagner (MO-02) and Gregory Meeks (NY-05).
'This bipartisan Increasing Investor Opportunities Act would allow CEFs to invest their assets more freely in securities issued by private funds, increasing opportunities for retail investors to access private markets. The bill also would protect retail investors, including many seniors, from harmful activists that misuse closed-end funds to extract quick profits for themselves. ICI applauds Representatives Wagner and Meeks for continuing to advocate for American investors, and we look forward to seeing the legislation pass both the House and the Senate for the President's signature.'
Background:
The Increasing Investor Opportunities Act would allow a CEF to invest more assets in private market securities, expanding access for retail investors to these growing markets. It also would restrict the proportion of CEF shares that activist investors and their affiliates could acquire to no more than 10 percent, closing the loophole that activists exploit at the expense of CEFs' long-term shareholders. This restriction would prevent predatory activist investors from extracting money from CEFs by taking over the funds to force them into liquidity events or to radically change their investment strategies.
Contact: [email protected]
View original content to download multimedia:
SOURCE Investment Company Institute
