What are the restrictions on investing in certain countries?

In California, the Alternative Investment Law imposes restrictions on investing in certain countries due to the risks associated with them. The law allows for the state to limit investments in countries deemed to be at higher risk for political, economic, and social instability. This is to protect investors from suffering significant losses due to factors outside of their control. The law requires that investments be limited to countries defined by the California Attorney General as having an established administrative and legal framework for protection of investments. It also requires that investments only be made in countries with a level of economic and political stability that provides reasonable assurance of protecting the investment’s value. The law is meant to protect investors from placing their funds in countries that are known to be corrupt, have volatile currencies, or have high levels of political or ethnic conflict. Investments must also not be made in any country that has previously defaulted on its debt, or any country that has been sanctioned by the United Nations Security Council or the United States. Furthermore, investments are not allowed in any country that has a current or pending state of war or armed conflict, or any country that the State of California determines is likely to threaten the security of United States citizens. Finally, the law also prohibits investments in any country that the California Attorney General determines is engaged in human rights abuses.

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What are the restrictions on investing in certain countries?

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