Request a Proposal

Puerto Rico-Only Plans and Collective Trusts

Puerto Rico Plans tax-exempt under the Puerto Rico code, termed Puerto Rico-only plans, may now participate in certain pooled investment vehicles – collective investments trusts (CITs) – “without requiring the vehicle or interest in it to be registered under U.S. securities laws”. This is in accordance with the Division of Investment Management’s no-action letter position, clarifying that the Securities and Exchange Commission (SEC) will in fact allow CITs to accept PR-only plans as investors without registration and compliance requirements. As such, banks offering CITs may be willing to accept PR-only plan investors.

www.planadviser.com; May/June 2019.