Increasing Investor Opportunities Act

This bill amends the Investment Company Act of 1940 to allow closed-end companies to invest in private funds without being prohibited or limited by the Securities and Exchange Commission (SEC), except as otherwise restricted by the Act. It also prevents national securities exchanges from restricting the listing or trading of such closed-end companies' securities, with certain exceptions.

Sec. 2, Closed-end company authority to invest in private funds: The SEC cannot prohibit a closed-end company from investing any or all of its assets in securities issued by private funds, nor can it restrict the offer, sale, or listing of such a closed-end company's securities, unless the restriction is unrelated to the private fund's characteristics or status. This also applies to closed-end companies that elect to be treated as business development companies.

Definition of private fund: The bill adds a definition for 'private fund' to the Investment Company Act, using the meaning from the Investment Advisers Act of 1940.

Treatment by national securities exchanges: National securities exchanges cannot prohibit, condition, or restrict the listing or trading of a closed-end company's securities because it invests in private funds, unless the exchange's rules are consistent with the new SEC authority restrictions.

Investment limitation: The bill updates cross-references in the Investment Company Act to include a new subparagraph (C) in certain provisions related to investment limitations.

Rules of construction: The bill clarifies that it does not limit or amend any fiduciary duties owed to a closed-end company or by its investment adviser, nor does it affect valuation, liquidity, or redemption requirements under the Investment Company Act.