[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5322 Introduced in House (IH)]

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114th CONGRESS
  2d Session
                                H. R. 5322

 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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                    IN THE HOUSE OF REPRESENTATIVES

                              May 25, 2016

Ms. Velazquez (for herself, Mr. Pierluisi, and Mr. Serrano) introduced 
 the following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``U.S. Territories Investor 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 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 three 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 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 
        appropriate in the public interest and for the protection of 
        investors.
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