This bill bars brokers, dealers, and investment advisers with significant ties to China from operating in U.S. securities markets. Specifically, it prohibits companies controlled by China or Chinese nationals, as well as firms that rely on Chinese affiliates for essential services like software development or customer support, from joining national securities associations or registering with the Securities and Exchange Commission. The restrictions apply to any entity where China or a Chinese resident owns more than 25 percent of voting shares. The bill affects financial firms and their employees who work with these entities, as well as investors who use their services. The restrictions are temporary, set to expire five years after the law takes effect, and grant regulatory authorities broad examination powers to verify compliance, including inspecting foreign facilities.
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