Aligning SEC Regulations for the World Bank’s International Development Association Act
Sponsored By: Representative Waters, Maxine [D-CA-43]
Passed House
Summary
Exempts International Development Association securities from U.S. securities laws. This bill would treat IDA-issued securities and securities guaranteed by the IDA as exempt under the Securities Act of 1933 and the Securities Exchange Act of 1934 while letting the Securities and Exchange Commission set appropriate reporting rules, suspend the exemption, and with an effective date 30 days after enactment unless the Treasury reports IDA is providing assistance to terrorism-designated governments.
Show full summary
- Investors: IDA bonds would be classified as "exempted securities," changing which U.S. registration and disclosure rules apply. The IDA must still file annual and other reports as the SEC requires.
- IDA and borrowers: The carve-out explicitly covers any securities issued by the IDA and any securities guaranteed by the IDA for principal and interest, clarifying the U.S. legal status of IDA-backed debt.
- Oversight and security: The SEC may suspend the exemption for any or all IDA securities and will report to Congress on how the exemption is working. The exemption will not take effect if Treasury reports pre-effective-date that the IDA is aiding governments the Secretary of State has identified for repeatedly supporting terrorism.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Easier SEC rules for World Bank IDA bonds
The bill would exempt World Bank IDA bonds and other securities from normal SEC registration. This would also cover securities that IDA guarantees. The SEC could still require yearly or other reports from IDA to protect investors. The SEC, after consulting the National Advisory Council on International Monetary and Financial Problems, could suspend the exemption. It would start 30 days after enactment. It would not start if, before that date, Treasury reports that IDA aids a government the State Department lists as a state sponsor of terrorism. If passed, this could make it easier and cheaper to issue and buy IDA debt.
Sponsors & CoSponsors
Sponsor
Waters, Maxine [D-CA-43]
CA • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov