Bill > S2552

This bill, known as the "PRC Broker-Dealers and Investment Advisers Moratorium Act," establishes significant restrictions on broker-dealers and investment advisers with connections to the People's Republic of China (PRC). Specifically, the bill prohibits broker-dealers from being members of a national securities association and prevents investment advisers from registering with the Securities and Exchange Commission (SEC) if they meet certain criteria, such as being controlled by a PRC entity, controlled by a PRC national residing in China, or having an affiliate in China that provides essential services like software development or customer support. The bill defines key terms such as "control" (owning more than 25% of voting securities) and "U.S. person" (U.S. citizens, permanent residents, or entities organized under U.S. laws). The legislation grants national securities associations and the SEC examination authority to ensure compliance, including the right to examine books and facilities in foreign countries. Importantly, these provisions are set to automatically expire 5 years after the bill's enactment, suggesting a temporary measure designed to address specific national security or economic concerns related to Chinese financial entities.

Housing and Urban Affairs

https://www.congress.gov/bill/119th-congress/senate-bill/2552/all-info