P.R. Laws tit. 10, § 691r
The following actions shall be unlawful for representing a risk to public interest:
(a) For any person to solicit or to permit the use of his/her name to solicit any proxy or consent or authorization in respect of any security of which a registered investment company is the issuer in contravention of the regulations that the Commission may prescribe as appropriate in the public interest.
(b) For any registered investment company or affiliated person thereof, any issuer of a voting-trust certificate related to any security of a registered investment company, or any underwriter of such a certificate, to offer for sale, sell, or deliver after sale, in connection with a public offering, any such voting-trust certificate.
(c) For any registered investment company to purchase any voting security if, to the knowledge of such registered company, cross-ownership or circular ownership exists, or after such acquisition will exist, between such registered company and the issuer of such security. If such cross-ownership or circular ownership comes into existence upon the purchase by a registered investment company of the securities of another company, it shall be the duty of the registered investment company to eliminate the same within one year after it first knows of such existence of such cross-ownership or circular ownership. Cross-ownership shall be deemed to exist between two companies when each of such companies beneficially owns more than three percent (3%) of the issued voting securities of the other company. Circular ownership shall be deemed to exist between two companies if such companies are included within a group of three or more companies, each of which:
(1) Beneficially owns more than three percent (3%) of the issued voting securities of one or more other companies of the group, and
(2) has more than three percent (3%) of its own issued voting securities beneficially owned by another company, or by each of two or more other companies, of the same group.
The provisions of subsection (c) shall not be construed to prohibit a registered investment company from investing in non-voting securities that have been issued by other investment companies, or in voting securities issued by investment companies where cross-ownership does not exist, as defined in this subsection (c).
History —July 30, 2013, No. 93, § 21, eff. 120 days after July 30, 2013.