Puerto Rico Loophole Utilized by UBS Targeted by House Lawmaker
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A lawmaker in the U.S. House of Representatives is seeking to close a legal loophole that’s prevented 3.5 million residents of Puerto Rico from enjoying investor safeguards that have been in place in the mainland for 75 years.
Representative Nydia Velazquez, a New York Democrat who sits on the House Financial Services Committee, plans to introduce a bill Friday that would eliminate Puerto Rico’s exemption from the Investment Company Act of 1940, which regulates the conduct of mutual-fund companies, according to a draft copy provided to Bloomberg News.