2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 1 - Regulation of Business Generally (§§ 1 — 998q) › Chapter 33 - Investment Companies (§§ 661 — 683) › § 665 - Registration of investment companies

(a) Any investment company organized or otherwise created under the laws of the Commonwealth of Puerto Rico may register for the purposes of this chapter by filing in the Secretary’s office an application for registration, in such form as the Secretary shall prescribe. An investment company shall be deemed to be registered from the date the Secretary issues to it the certificate of registration. The Secretary shall issue to the applying company the certificate of registration if, after proper investigation and inquiry in the best sources of information available, he shall ascertain that the reputation, responsibility and general capability of the persons mentioned in the application for registration warrant the recognition and guarantee the probability that the business of the applicant will be carried out honestly and efficiently according to the purposes of this chapter, and that public necessity and convenience require that the certificate of registration be issued.
(b) Every investment company shall file in the Secretary’s office an original and such copies of an application for registration in such form and accompanying such documents and information as the Secretary shall prescribe, which includes:
(1) A recital of the policy of the applicant in respect of each of the following types of activities, such recital to consist in each case of a statement whether the applicant reserves freedom of action to engage in the activities of such type, and if such freedom of action is reserved, a statement briefly indicating in so far as possible, the extent to which the applicant intends to engage therein:
(A) The classification within which the applicant proposes to operate, such classifications being those specified in § 662(b) of this title.
(B) Borrowing money.
(C) The issuance of senior securities.
(D) Engaging in the business of underwriting securities issued by other persons.
(E) Concentrating investments in a particular industry or group of industries.
(F) The purchase and sale of real estate and commodities, or either of them.
(G) Making loans to other persons.
(H) Proposed investment portfolio turnover.
(2) A statement of the applicant’s business plan in respect of matters not enumerated in clause (1) of this subsection which the applicant deems fundamental to said plan, on which it elects to treat as such.
(3) The name and address of each director, officer and affiliated person of the applicant; the name and principal address of every company, other than the applicant, of which each such person is an officer, director, or partner; a brief statement of the business experience for the preceding five years of each officer and director of the applicant.
(4) The capital structure of the applicant. For any issue of senior securities, the registered investment company shall require the previous authorization of the Secretary of the Treasury.
(c) If it appears to the Secretary that an investment company has failed to file the registration statement required by this section or has filed such a registration statement but omitted therefrom material facts required to be stated therein, or has filed such a registration statement or report in violation of § 673 of this title or has failed to meet the requirements of § 666 of this title, the Secretary shall notify such company by registered mail of the failure to file such registration statement, or of the respects in which said registration statement appears to be materially incomplete or misleading, as the case may be, and shall grant a period of time which in no event shall be less than ten days counted from the date of mailing of such notice within which such company shall file a corrected registration statement. If such registration statement is not filed corrected within the time so fixed by the Secretary or any extension thereof, the Secretary, after appropriate notice and opportunity for hearing, and upon such conditions and with such exemptions as it deems appropriate for the protection of investors, may by order deny the registration of such company.
(d) If it appears to the Secretary that a registered investment company has failed to comply with any of the requirements and duties imposed by this chapter or by regulations issued thereunder, the Secretary may, after due notice and opportunity for hearing, suspend or revoke the certificate of registration of said company through resolution to that effect.
History —Oct. 19, 1954, No. 6, p. 220, § 5, eff. Jan. 1, 1955.