Federal

Aligning SEC Regulations for the World Bank’s International Development Association Act

Source: Congress.gov · 793 words in original text

What This Bill Does

This bill gives securities (financial instruments that represent ownership or debt) issued by the International Development Association the same legal exemptions from securities laws that other multilateral development banks (international financial organizations with multiple member countries) already have. The bill adds these protections to the existing International Development Association Act.

Who It Affects

The International Development Association and the Securities and Exchange Commission (the federal agency that regulates securities markets).

Key Provisions

* Securities issued by the International Development Association, including any guaranties (promises to pay if the borrower cannot), are exempt from securities laws under the Securities Act of 1933 and the Securities Exchange Act of 1934 (Sec. 2(a)). * The International Development Association must file annual reports with the Securities and Exchange Commission that the Commission decides are appropriate and necessary to protect the public and investors (Sec. 2(a)). * The Securities and Exchange Commission can suspend these exemptions for any or all securities issued by the International Development Association at any time after consulting with the National Advisory Council on International Monetary and Financial Problems (Sec. 2(b)). * The Securities and Exchange Commission must include information about how this law is working in its annual reports to Congress (Sec. 2(b)).

What Changes

The International Development Association's securities receive the same exemptions from federal securities laws that apply to other multilateral development banks where the United States is a member.

Important Definitions

None defined in bill text.

Effective Date

30 days after the bill becomes law (Sec. 2(b)).

IB Union Calendar No. 233 118TH CONGRESS 1ST SESSION H. R. 1161 [Report No. 118–289] To accord securities issued by the International Development Association the same exemption from the securities laws that applies to the securities of other multilateral development banks in which the United States is a member. IN THE HOUSE OF REPRESENTATIVES FEBRUARY 24, 2023 Ms. WATERS introduced the following bill; which was referred to the Committee on Financial Services DECEMBER 1, 2023 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed [Strike out all after the enacting clause and insert the part printed in italic] [For text of introduced bill, see copy of bill as introduced on February 24, 2023] VerDate Sep 11 2014 23:54 Dec 01, 2023 Jkt 049200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\H1161.RH H1161 kjohnson on DSK7ZCZBW3PROD with $$_JOB 2 •HR 1161 RH A BILL To accord securities issued by the International Development Association the same exemption from the securities laws that applies to the securities of other multilateral devel- opment banks in which the United States is a member. VerDate Sep 11 2014 23:54 Dec 01, 2023 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6652 E:\BILLS\H1161.RH H1161 kjohnson on DSK7ZCZBW3PROD with $$_JOB 3 •HR 1161 RH Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Aligning SEC Regula- 4 tions for the World Bank’s International Development Asso- 5 ciation Act’’. 6 SEC. 2. EXEMPTION OF SECURITIES OF THE INTER- 7 NATIONAL DEVELOPMENT ASSOCIATION 8 FROM THE SECURITIES LAWS. 9 (a) IN GENERAL.—The International Development As- 10 sociation Act (22 U.S.C. 284–284cc) is amended by adding 11 at the end the following: 12 ‘‘SEC. 32. EXEMPTION OF SECURITIES OF THE INTER- 13 NATIONAL DEVELOPMENT ASSOCIATION 14 FROM THE SECURITIES LAWS. 15 ‘‘(a) EXEMPTION FROM SECURITIES LAWS; REPORTS 16 TO SECURITIES AND EXCHANGE COMMISSION.—Any securi- 17 ties issued by the Association (including any guaranty by 18 the Association, whether or not limited in scope) and any 19 securities guaranteed by the Association as to both prin- 20 cipal and interest shall be deemed to be exempted securities 21 within the meaning of section 3(a)(2) of the Securities Act 22 of 1933 (15 U.S.C. 77c(a)(2)) and section 3(a)(12) of the 23 Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(12)). 24 The Association shall file with the Securities and Exchange 25 VerDate Sep 11 2014 23:54 Dec 01, 2023 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6203 E:\BILLS\H1161.RH H1161 kjohnson on DSK7ZCZBW3PROD with $$_JOB 4 •HR 1161 RH Commission such annual and other reports with regard to 1 such securities as the Commission shall determine to be ap- 2 propriate in view of the special character of the Association 3 and its operations and necessary in the public interest or 4 for the protection of investors. 5 ‘‘(b) AUTHORITY OF SECURITIES AND EXCHANGE 6 COMMISSION TO SUSPEND EXEMPTION; REPORTS TO CON- 7 GRESS.—The Securities and Exchange Commission, acting 8 in consultation with the National Advisory Council on 9 International Monetary and Financial Problems, is author- 10 ized to suspend the provisions of subsection (a) of this sec- 11 tion at any time as to any or all securities issued or guar- 12 anteed by the Association during the period of such suspen- 13 sion. The Commission shall include in its annual reports 14 to the Congress such information as it shall deem advisable 15 with regard to the operations and effect of this section.’’. 16 (b) EFFECTIVE DATE.—The amendment made by sub- 17 section (a) shall take effect 30 days after the date of the 18 enactment of this Act. 19 VerDate Sep 11 2014 23:54 Dec 01, 2023 Jkt 049200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6203 E:\BILLS\H1161.RH H1161 kjohnson on DSK7ZCZBW3PROD with $$_JOB VerDate Sep 11 2014 23:54 Dec 01, 2023 Jkt 049200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6203 E:\BILLS\H1161.RH H1161 kjohnson on DSK7ZCZBW3PROD with $$_JOB Union Calendar No. 233 118TH CONGRESS 1ST SESSION H. R. 1161 [Report No. 118–289] A BILL To accord securities issued by the International De- velopment Association the same exemption from the securities laws that applies to the securities of other multilateral development banks in which the United States is a member. DECEMBER 1, 2023 Reported with an amendment, committed to the Com- mittee of the Whole House on the State of the Union, and ordered to be printed VerDate Sep 11 2014 23:54 Dec 01, 2023 Jkt 049200 PO 00000 Frm 00006 Fmt 6651 Sfmt 6651 E:\BILLS\H1161.RH H1161 kjohnson on DSK7ZCZBW3PROD with $$_JOB

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