S. 484 — Reported in Senate

II Calendar No. 14 115th CONGRESS 1st Session S. 484 IN THE SENATE OF THE UNITED STATES March 1, 2017Mr. Menendez (for himself, Mr. Hatch, Ms. Cortez Masto, and Mr. Rubio) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs March 13, 2017Reported by Mr. Crapo, with amendmentsOmit the part struck through and insert the part printed in italic 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 2017. 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).— (1) by striking paragraph (1); and (2) by redesignating paragraphs (2) through (5) as paragraphs (1) through (4), respectively. (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 andor 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. March 13, 2017Reported with amendments