H.R. 1764: Aligning SEC Regulations for the World Bank’s International Development Association Act

This bill aims to amend existing laws to provide certain protections to securities issued by the International Development Association (IDA), which is part of the World Bank focused on providing financial and technical assistance to developing countries.

Key Provisions

• Exemption from Securities Laws: The bill designates securities issued by the IDA as exempt from some securities laws that typically apply to other financial entities. This is intended to align the IDA's regulatory treatment with other multilateral development banks of which the United States is a member. Specifically, it exempts IDA securities from the Securities Act of 1933 and the Securities Exchange Act of 1934.
• Annual Reporting: Although the IDA securities are exempt, the IDA will still be required to file annual and other reports with the Securities and Exchange Commission (SEC) as deemed necessary for public interest and investor protection.
• Suspension of Exemption: The SEC will have the authority to suspend the exemption to protect investor interests when necessary. This can occur in consultation with the National Advisory Council on International Monetary and Financial Problems.
• Effective Date: The changes proposed by this amendment would go into effect 30 days after the bill is enacted unless the Secretary of the Treasury reports that the IDA is providing financial assistance to certain countries identified for their involvement in international terrorism, in which case the amendment would not take effect.

Overall Impact

The bill seeks to streamline regulatory compliance for the IDA while ensuring that transparency and oversight measures remain in place through required reporting. It also places certain restrictions dependent on geopolitical considerations regarding terrorism, thus maintaining a level of accountability in the IDA's foreign financial assistance.

Relevant Companies

• None found