Puerto Rico's Bank Regulator Backs Closing Loophole Used by UBS
- Swiss bank agreed in October to pay $5.2 million in settlement
- Puerto Rico was exempted by Congress from the 1940 law
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The top banking regulator in Puerto Rico said he supports a bill introduced in Congress to close the legal loophole that witholds basic investor protections from any of the island’s 3.5 million residents who purchase mutual funds.
Rafael Blanco, the island’s Commissioner of Financial Institutions, said in an interview that the exemption to the Investment Company Act of 1940 for Puerto Rico is wrong, and should be ended.