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I 114TH CONGRESS 2D SESSION H. R. 5322 To amend the Investment Company Act of 1940 to terminate an exemption for companies located in Puerto Rico, the Virgin Islands, and any other possession of the United States. IN THE HOUSE OF REPRESENTATIVES MAY 25, 2016 Ms. VELA´ZQUEZ (for herself, Mr. PIERLUISI, and Mr. SERRANO) introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Investment Company Act of 1940 to terminate an exemption for companies located in Puerto Rico, the Virgin Islands, and any other possession of the United States. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘U.S. Territories Inves- 4 tor Protection Act of 2016’’. 5 VerDate Sep 11 2014 22:13 May 27, 2016 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H5322.IH H5322 sradovich on DSK3TPTVN1PROD with BILLS 2 •HR 5322 IH SEC. 2. TERMINATION OF EXEMPTION. 1 (a) IN GENERAL.—Section 6(a) of the Investment 2 Company Act of 1940 (15 U.S.C. 80a–6(a)) is amended 3 by striking paragraph (1). 4 (b) EFFECTIVE DATE AND SAFE HARBOR.— 5 (1) EFFECTIVE DATE.—Except as provided in 6 paragraph (2), the amendment made by subsection 7 (a) shall take effect on the date of the enactment of 8 this Act. 9 (2) SAFE HARBOR.—With respect to a company 10 that is exempt under section 6(a)(1) of the Invest- 11 ment Company Act of 1940 (15 U.S.C. 80a–6(a)(1)) 12 on the day before the date of the enactment of this 13 Act, the amendment made by subsection (a) shall 14 take effect on the date that is three years after the 15 date of the enactment of this Act. 16 (3) EXTENSION OF SAFE HARBOR.—The Secu- 17 rities and Exchange Commission, by rule and regula- 18 tion upon its own motion, or by order upon applica- 19 tion, may conditionally or unconditionally, under sec- 20 tion 6(c) of the Investment Company Act of 1940 21 (15 U.S.C. 80a–6(c)), further delay the effective 22 date for a company described in paragraph (2) for 23 a maximum of three years following the initial three- 24 year period if, before the end of the initial three-year 25 period, the Commission determines that such a rule, 26 VerDate Sep 11 2014 22:13 May 27, 2016 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5322.IH H5322 sradovich on DSK3TPTVN1PROD with BILLS 3 •HR 5322 IH regulation, motion, or order is necessary or appro- 1 priate in the public interest and for the protection 2 of investors. 3 Æ VerDate Sep 11 2014 22:13 May 27, 2016 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H5322.IH H5322 sradovich on DSK3TPTVN1PROD with BILLS