P.R. Laws tit. 7, § 1247
(a) Application and fees for issuing licenses. — Every trust, corporation or partnership interested in operating as an investment capital fund shall request and obtain a license from the Commissioner upon payment of those nonrefundable issuing fees established by the Commissioner through regulations, and shall also furnish the information required by the applicable regulations.
(b) Effectiveness of licenses. — The licenses or authorizations issued by the Commissioner pursuant to the provisions of this chapter, shall be in effect for a term of ten (10) years, as of the date of issue. No licenses shall be issued under this section after December 31, 2006.
However, licenses issued prior to that date may be renewed for the additional time period and subject to the conditions established by the Commissioner through regulations. In every license renewal case, the Commissioner must carry out a prior evaluation of the operation and functioning of each fund that requests such a renewal.
(c) Fees for issuing eligible proprietary interests. — In addition to the fees established in § 875(b) of Title 10, known as the “Uniform Securities Act of Puerto Rico”, or an equivalent provision of any other act of a similar nature that replaces or succeeds it, each fund shall pay the Commissioner for each issue of eligible proprietary interests in said fund, a sum equal to one half of one percent (0.5%) of the total sum derived from the sale of eligible proprietary interests in the fund. The procedure for collecting these fees shall be established by the Commissioner through regulations.
(d) Limitation of the worth of the fund’s shares. — The Commissioner shall authorize the issue of eligible proprietary interests by the funds, provided their aggregate worth does not exceed fifty million dollars ($50,000,000) per calendar year.
However, if the Commissioner does not authorize the issue of eligible proprietary interests for an aggregate total of fifty million dollars ($50,000,000) during a specific calendar year, the existing balance equal to the difference between fifty million dollars ($50,000,000) and the total worth of the eligible proprietary interests authorized during said calendar year, shall be used by the Commissioner during the next calendar year to authorize issues of eligible proprietary interests of capital investment funds in excess of fifty million dollars ($50,000,000).
The Commissioner shall adopt regulatory norms that promote and allow participation by the largest number of persons interested in investing in a fund, to avoid a concentration of investments in those cases in which the annual demand for eligible proprietary interests exceeds the fifty million dollars ($50,000,000) limit. These regulations shall also provide the required minimum annual investment amount.
(e) Audit or inspections of funds. — The Commissioner, through any of his/her officials, agents or employees, shall carry out audits or annual inspections and examine any books, papers or documents pertinent to the information that shall be included in the reports, or related to the fund’s operations in general, to determine the correctness of any information submitted in the reports filed by the fund, or for the purpose of ensuring that the fund is carrying out the investments for which it was authorized. The Commissioner shall charge those fees established through regulations for each audit.
History —Oct. 6, 1987, No. 3, p. 840, § 7; Aug. 31, 1992, No. 57, § 1; July 11, 1996, No. 70, § 7.