H.R. 5322 — Reported in House

IB Union Calendar No. 521 114th CONGRESS 2d Session H. R. 5322 [Report No. 114–673] IN THE HOUSE OF REPRESENTATIVES May 25, 2016 Ms. Velázquez (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 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 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. July 11, 2016 Committed to the Committee of the Whole House on the State of the Union and ordered to be printed