P.R. Laws tit. 7, § 3115
(a) Any participation or investment offer in a Fund shall be properly registered or notified to CFIPR and comply with all provisions of the Federal Security Law of the United States and Puerto Rico, as applicable with respect to disclosure and registration.
(b) Every Fund shall:
(1) Inform its investors of its operating results on a quarterly basis (unaudited) and annually audited by a certified public accountant duly licensed in Puerto Rico in order to verify that the Fund is operating in accordance to the policies, practices, and agreements presented during its organization. The annually audited report shall include: internal return of investment (“IRI”), breakdown of fees and expenses of the partnership, summary of capital calls, debt summary and a letter from the general partners to the investors.
(2) The disclosure of the Fund shall include:
(A) Risks and opportunities in the Fund as well as material events including but not limited to: fraud, material breach of the fiduciary duty, material breach of an agreement, bad faith, and gross negligence.
(B) Certification of Fund compliance with provisions of this chapter duly sworn by the chief executive officer.
(3) Hold up an annual meeting for its partners in which the general partners shares information regarding the operation of the Fund with its investors and/or limited partners.
(4) CFIPR shall have the power to conduct tests and inspections of the Funds to ensure that its operations and financial results have been properly informed, meet the fiduciary duty with its investors and comply with the requirements of this chapter. The Fund will pay the cost established by the CFIPR under regulation to perform such tests and inspections. CFIPR will take the necessary actions including the liquidation of the Fund and cessation if additional offerings of its securities in the event of a breach.
History —Nov. 12, 2014, No. 185, § 6.