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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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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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘U.S. Territories Inves-
tor Protection Act of 2016’’. 
SEC. 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 Invest-
ment 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 three years after the 
date of the enactment of this Act. 
(3) EXTENSION OF SAFE HARBOR.—The Secu-
rities and Exchange Commission, by rule and regula-
tion upon its own motion, or by order upon applica-
tion, may conditionally or unconditionally, under sec-
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tion 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 three years following the initial three- 
year period if, before the end of the initial three-year 
period, the Commission determines that such a rule, 
regulation, motion, or order is necessary or appro-
priate in the public interest and for the protection 
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 
terminate an exemption for companies located in 
Puerto Rico, the Virgin Islands, and any other 
possession of the United States. 
JULY 11, 2016 
Committed to the Committee of the Whole House on the 
State of the Union and ordered to be printed 
VerDate Sep 11 2014 
02:21 Jul 12, 2016
Jkt 059200
PO 00000
Frm 00006
Fmt 6651
Sfmt 6651
E:\BILLS\H5322.RH
H5322
rfrederick on DSK6VPTVN1PROD with BILLS