P.R. Laws tit. 10, § 667
(a) It shall be unlawful for any of the following persons to serve or act in the capacity of officer or director of any registered investment company:
(1) Any person who within the last ten years has been convicted of any felony or misdemeanor involving the purchase or sale of any security or arising out of such person’s conduct as an underwriter, broker or dealer, or as an affiliated person, salesman, or employee of any investment company, bank or insurance company;
(2) any person who, by reason of any misconduct, is permanently or temporarily enjoined by order, judgment, or decree of a competent court from acting as an underwriter, broker or dealer, or as an affiliated person, salesman or employee of any investment company, bank or insurance company, or from engaging in or continuing any conduct or practice in connection with any such activity or in connection with the purchase or sale of any security.
(b) No registered investment company shall purchase or otherwise acquire any security (except securities issued by it) issued or owned by, or under the control of, a private corporation or partnership, knowing that an officer, director, member of an advisory board, investment advisor, or employee of such investment company effectively controls such corporation or partnership, either directly, or through an affiliated person, or through, or jointly with, members of his immediate family, in his capacity as trustee, or as managing partner. The Secretary may, by rules and regulations, conditionally or unconditionally exempt any transaction or types of transactions from the provisions of this subsection, when he deems it convenient to the public interest and provided such exemption is consistent with the protection of investors.
History —Oct. 19, 1954, No. 6, p. 220, § 7, eff. Jan. 1, 1955.