Exception for business development company. Notwithstanding
the exemption set forth in section 6(f) [15 USCS § 80a-6(f)], section 31 [15
USCS § 80a-30] 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
30 [15 USCS § 80a-29] shall be construed to refer to the financial statements
required to be filed by such business development company pursuant to section
13 of the Securities Exchange Act of 1934 [15 USCS § 78m].
Risk factors statement; availability.
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.
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 title, 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.
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