Aligning SEC Regulations for the World Bank’s International Development Association Act

Summary

Exempts securities issued or fully guaranteed by the International Development Association (IDA) from certain U.S. securities laws. The Securities and Exchange Commission (SEC) can still require IDA to file reports it deems appropriate and may suspend the exemption after consulting a designated advisory council. The SEC must report to Congress on how this policy works in practice. The change takes effect 30 days after enactment unless, before that date, the Treasury Secretary reports that IDA is providing financial assistance to a government designated as supporting international terrorism.

• Declares IDA-issued or fully guaranteed securities exempt from certain U.S. securities laws.
• Requires IDA to file SEC reports as the Commission deems appropriate.
• Authorizes the SEC to suspend the exemption after consulting a designated advisory council.
• Directs the SEC to report to Congress on the exemption’s implementation and impacts.
• Sets a 30-day delayed effective date after enactment.
• Blocks the exemption from taking effect if Treasury reports IDA aids a government designated for supporting international terrorism before the 30th day.
• Applies only to IDA securities; does not affect other issuers or the tax code.
• Increases regulatory flexibility for a multilateral development institution while preserving SEC oversight tools.