Congressman Pat Harrigan of North Carolina’s 10th District has voted in favor of H.R. 3383, the Increasing Investor Opportunities Act. The bill aims to update regulations from the Investment Company Act of 1940, enabling certain publicly traded funds to invest in private funds. This legislative change is intended to give retail investors access to investment strategies that were previously available mainly to large institutions.
“Most families invest through vehicles like closed-end funds, yet the rules governing those funds still assume the markets look the way they did in the 1940s,” said Congressman Harrigan. “If we want savers and retirees to have real choices, then we have to clear out the barriers that only exist because the law never evolved. This bill gives everyday investors access to strategies that were previously off-limits for no good reason.”
The act restricts the Securities and Exchange Commission from limiting a closed-end fund’s ability to invest in private funds unless there is a genuine investor-protection concern related specifically to those investments. It also prevents stock exchanges from denying listings for closed-end funds using these strategies and clarifies that fiduciary duties, valuation standards, and liquidity requirements remain unchanged.
Following its passage in the House, H.R. 3383 will now proceed to the Senate for consideration. Congressman Harrigan has urged prompt action on this legislation so families and retirees can benefit from more competitive investment options.
In recent political developments, Pat Harrigan secured his seat by defeating Ralph R. Scott, Jr., winning with 57.5% of votes in the 2024 general election.
