U.S. Territories Investor Protection Act of 2016

Bill: 114-s-3467
Sponsor: full_name: Sen. Menendez, Robert [D-NJ]
Introduced: 2016-09-29
Policy area: Finance and Financial Sector
Subjects: Banking and financial institutions regulation

Caribbean area

Financial services and investments

Puerto Rico

Securities

U.S. territories and protectorates

Virgin Islands
Latest action: action_date: 2016-09-29
text: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2016-09-29
action_desc: Introduced in Senate
text: <p><b>U.S. Territories Investor Protection Act of 2016 </b></p> <p> This bill amends the Investment Company Act of 1940 to repeal the exemption from its coverage of investment companies created under the laws of Puerto Rico, the Virgin Islands, or any other U.S. possession.</p>

tv_txt: II 114th CONGRESS 2d Session S. 3467 IN THE SENATE OF THE UNITED STATES September 29, 2016 Mr. Menendez (for himself and Mr. Hatch ) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 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.

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.