IB 

Union Calendar No. 521 

114TH CONGRESS 

2D SESSION H. R. 5322 

[Report No. 114–673] 

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 

JULY 11, 2016 

Committed to the Committee of the Whole House on the State of the Union 

and ordered to be printed 


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•HR 5322 RH

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. 


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3 

•HR 5322 RH

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘U.S. Territories Inves5 tor Protection Act of 2016’’. 

6 SEC. 2. TERMINATION OF EXEMPTION. 

7 (a) IN GENERAL.—Section 6(a) of the Investment 

8 Company Act of 1940 (15 U.S.C. 80a–6(a)) is amended 

9 by striking paragraph (1). 

10 (b) EFFECTIVE DATE AND SAFE HARBOR.— 

11 (1) EFFECTIVE DATE.—Except as provided in 

12 paragraph (2), the amendment made by subsection 

13 (a) shall take effect on the date of the enactment of 

14 this Act. 

15 (2) SAFE HARBOR.—With respect to a company 

16 that is exempt under section 6(a)(1) of the Invest17 ment Company Act of 1940 (15 U.S.C. 80a–6(a)(1)) 

18 on the day before the date of the enactment of this 

19 Act, the amendment made by subsection (a) shall 

20 take effect on the date that is three years after the 

21 date of the enactment of this Act. 

22 (3) EXTENSION OF SAFE HARBOR.—The Secu23 rities and Exchange Commission, by rule and regula24 tion upon its own motion, or by order upon applica25 tion, may conditionally or unconditionally, under secVerDate Sep 11 2014 02:21 Jul 12, 2016 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5322.RH H5322

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•HR 5322 RH

1 tion 6(c) of the Investment Company Act of 1940 

2 (15 U.S.C. 80a–6(c)), further delay the effective 

3 date for a company described in paragraph (2) for 

4 a maximum of three years following the initial three5 year period if, before the end of the initial three-year 

6 period, the Commission determines that such a rule, 

7 regulation, motion, or order is necessary or appro8 priate in the public interest and for the protection 

9 of investors. 


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Union Calendar No. 521 

114TH CONGRESS 

2D SESSION H. R. 5322 

[Report No. 114–673] 

A BILL 

To amend the Investment Company Act of 1940 to 

possession of the United States. Puerto Rico, the Virgin Islands, and any other terminate an exemption for companies located in 

JULY 11, 2016 

Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed 


rfrederick on DSK6VPTVN1PROD with BILLS