OVERSIGHT BOARD WELCOMES PASSAGE OF LAW CLOSING DAMAGING INVESTMENT ADVISOR LOOPHOLE

New law protects Puerto Rico’s investors and prevents discriminatory practices

(San Juan, PR –May 24, 2018) – The Financial Oversight and Management Board for Puerto Rico (the “Oversight Board”) created by Congress under the bipartisan Puerto Rico Oversight, Management and Economic Stability Act (“PROMESA” or the “Act”) today praised the passage of federal legislation closing a long-standing loophole that allowed investment companies in Puerto Rico to exploit Puerto Rican investors in ways that had long been illegal in the mainland.

A provision in the Economic Growth, Regulatory Relief, and Consumer Protection Act extends the Investment Company Act to Puerto Rico, which will provide greater oversight of brokerage firms operating in U.S. territories.

“Closing this loophole will result in greater protections and better treatment of Puerto Rican residents,” said Natalie Jaresko, Executive Director of the Oversight Board. “The board welcomes the change and thanks Rep. Nydia Velazquez for fighting tirelessly to end this discriminatory treatment of Puerto Ricans.”