PRIA, Government Policy, Made Personal

Summary

It says certain securities from pooled income funds, collective trust funds, collective investment funds, or similar funds that are not treated as investment companies do not have to follow state laws that require securities to be registered. Charitable organizations, and their trustees, directors, officers, employees, or volunteers acting in their jobs, do not have to register or be treated by state securities laws as dealers, brokers, agents, or investment advisers when they buy, hold, sell, or trade securities for the charity, for those excluded funds, or for certain charitable trusts, settlors, or beneficiaries. For the three-year period starting December 8, 1995, a State could pass a law that says this federal rule does not override that State’s securities laws, if the State law names this rule and applies going forward. Charitable organization = an organization described in paragraphs (1)–(5) of section 170(c) or section 501(c)(3) of title 26. Security = the same meaning as in section 78c. State = each State, the District of Columbia, Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands.

Title 15, §80a–3a

Commerce and Trade, Source: USLM XML via OLRC

(a)Registration requirements

A security issued by or any interest or participation in any pooled income fund, collective trust fund, collective investment fund, or similar fund that is excluded from the definition of an investment company under section 80a–3(c)(10)(B) of this title, and the offer or sale thereof, shall be exempt from any statute or regulation of a State that requires registration or qualification of securities.

(b)Treatment of charitable organizations

No charitable organization, or any trustee, director, officer, employee, or volunteer of a charitable organization acting within the scope of such person’s employment or duties, shall be required to register as, or be subject to regulation as, a dealer, broker, agent, or investment adviser under the securities laws of any State because such organization or person buys, holds, sells, or trades in securities for its own account in its capacity as trustee or administrator of, or otherwise on behalf of or for the account of one or more of the following:

(1)a charitable organization;

(2)a fund that is excluded from the definition of an investment company under section 80a–3(c)(10)(B) of this title; or

(3)a trust or other donative instrument described in section 80a–3(c)(10)(B) of this title, or the settlors (or potential settlors) or beneficiaries of any such trusts or other instruments.

(c)State action

Notwithstanding subsections (a) and (b), during the 3-year period beginning on December 8, 1995, a State may enact a statute that specifically refers to this section and provides prospectively that this section shall not preempt the laws of that State referred to in this section.

(d)Definitions

For purposes of this section

(1)

(2)the term “security” has the same meaning as in section 78c of this title; and

(3)the term “State” means each of the several States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands.

Notes & Related Subsidiaries

Editorial Notes

Codification Section was enacted as part of the Philanthropy Protection Act of 1995, and not as part of the Investment Company Act of 1940 which comprises this subchapter.

Statutory Notes and Related Subsidiaries

Effective Date

Section applicable as defense to any claim in administrative and judicial actions pending on or commenced after Dec. 8, 1995, that any person, security, interest, or participation of type described in Pub. L. 104–62 is subject to the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940, the Investment Advisers Act of 1940, or any State statute or regulation preempted as provided in this section, except as specifically provided in such statutes, see section 7 of Pub. L. 104–62, set out as an

Effective Date

of 1995 Amendment note under section 77c of this title.

§80a–3a Protection of Philanthropy Under State Law

Summary

Title 15, §80a–3a

Notes & Related Subsidiaries

Editorial Notes

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata