PRIA, Government Policy, Made Personal

Summary

Require a business development company to follow the same accounts and records rules as a registered closed‑end investment company, except that the company’s required financial reports mean the ones it files under the securities laws that apply to it. Each year the company must file with the Commission and give its shareholders a written statement explaining the risks of investing in the company because of its investment portfolio and capital structure. The Commission can set the form and details of that statement, and the company must provide copies to any registered broker or dealer who asks. The Commission can also make a rule that anyone who sells a business development company’s securities must tell the buyer, at or before the sale, that the risk statement exists and must make it available on request. When making such rules the Commission must consider whether they would place unreasonable burdens on brokers or dealers or unfairly harm fair, orderly markets.

Title 15, §80a–63

Commerce and Trade, Source: USLM XML via OLRC

(a)Notwithstanding the exemption set forth in section 80a–6(f) of this title, section 80a–30 of this title shall apply to a business development company to the same extent as if it were a registered closed-end investment company, except that the reference to the financial statements required to be filed pursuant to section 80a–29 of this title shall be construed to refer to the financial statements required to be filed by such business development company pursuant to section 78m of this title.

(b)(1)In addition to the requirements of subsection (a), a business development company shall file with the Commission and supply annually to its shareholders a written statement, in such form and manner as the Commission may, by rule, prescribe, describing the risk factors involved in an investment in the securities of a business development company due to the nature of such company’s investment portfolio and capital structure, and shall supply copies of such statement to any registered broker or dealer upon request.

(2)If the Commission finds it is necessary or appropriate in the public interest and consistent with the protection of investors and the purposes fairly intended by the policy and provisions of this subchapter, the Commission may also require, by rule, any person who, acting as principal or agent, sells a security of a business development company to inform the purchaser of such securities, at or before the time of sale, of the existence of the risk statement prepared by such business development company pursuant to this subsection, and make such risk statement available on request. The Commission, in making such rules and regulations, shall consider, among other matters, whether any such rule or regulation would impose any unreasonable burdens on such brokers or dealers or unreasonably impair the maintenance of fair and orderly markets.

Editorial Notes

Amendments

1996—Subsec. (b)(1). Pub. L. 104–290 inserted “and capital structure” after “portfolio”.

§80a–63 Accounts and Records

Summary

Title 15, §80a–63

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata