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H.R. 5322 (114th): U.S. Territories Investor Protection Act of 2016


The text of the bill below is as of Jul 12, 2016 (Referred to Senate Committee). The bill was not enacted into law.


IIB

114th CONGRESS

2d Session

H. R. 5322

IN THE SENATE OF THE UNITED STATES

July 12, 2016

Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs

AN ACT

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.

1.

Short title

This Act may be cited as the U.S. Territories Investor Protection Act of 2016.

2.

Termination of exemption

(a)

In general

Section 6(a) of the Investment Company Act of 1940 (15 U.S.C. 80a–6(a)) is amended by striking paragraph (1).

(b)

Effective date and safe harbor

(1)

Effective date

Except as provided in paragraph (2), the amendment made by subsection (a) shall take effect on the date of the enactment of this Act.

(2)

Safe harbor

With respect to a company that is exempt under section 6(a)(1) of the Investment Company Act of 1940 (15 U.S.C. 80a–6(a)(1)) on the day before the date of the enactment of this Act, the amendment made by subsection (a) shall take effect on the date that is 3 years after the date of the enactment of this Act.

(3)

Extension of safe harbor

The Securities and Exchange Commission, by rule and regulation upon its own motion, or by order upon application, may conditionally or unconditionally, under section 6(c) of the Investment Company Act of 1940 (15 U.S.C. 80a–6(c)), further delay the effective date for a company described in paragraph (2) for a maximum of 3 years following the initial 3-year period if, before the end of the initial 3-year period, the Commission determines that such a rule, regulation, motion, or order is necessary or appropriate in the public interest and for the protection of investors.

Passed the House of Representatives July 11, 2016.

Karen L. Haas,

Clerk