On January 17, 2018, the U.S. House of Representatives passed a bill, referred to as the Expanding Investment Opportunities Act, that would require the SEC to adopt rules permitting closed-end funds to use offering and proxy rules currently available only to non-investment companies for increased flexibility to register and offer additional shares, in an effort to reduce filing requirements and restrictions for closed-end funds and save on reporting costs for communications with investors in certain circumstances. Such rules would, among other things, allow closedend funds to offer shares more quickly through “automatic shelf registrations” and would remove requirements that closed-end funds file post-effective amendments to their registration statements to make material revisions, including to update financial statements. The bill will next go to the U.S. Senate for consideration. 

The text of the Expanding Investment Opportunities Act is available at: https://www.congress.gov/bill/115thcongress/house-bill/4279/text