Private Investment Companies

The Commission is publishing for comment new rules under the Investment Company Act of 1940 to implement provisions of the National Securities Markets Improvement Act of 1996 that apply to private investment companies. The proposed rules would define certain terms for purposes of the new exception from regulation under the Investment Company Act for private investment companies whose investors are all highly sophisticated investors, termed "qualified purchasers.' The proposed rules also would address certain transition issues related to existing private investment companies that have no more than 100 investors and certain other matters related to private investment companies.