Bill > HR7187

This bill, titled the "Clarity for Compensation Act," amends the Securities Exchange Act of 1934 to create an exemption from the definition of a "broker" for certain entities. Specifically, a "personal services entity," which is an entity established by a registered representative (a person associated with a broker-dealer and registered with a self-regulatory organization) to receive compensation for their services and for administrative purposes, will not be considered a broker if it solely receives compensation on behalf of the registered representative from that representative's broker, provided several conditions are met. These conditions include the broker approving and recording the payment, the entity not holding itself out as a broker or engaging in broker/dealer activities beyond receiving compensation, the broker maintaining adequate supervision, a written agreement between the broker and the entity, and the entity being owned solely by the registered representative, their immediate family members, or entities wholly owned by them. The entity must also comply with any other rules set by the Securities and Exchange Commission (SEC) and maintain records for oversight by the SEC and applicable self-regulatory organizations. This exemption is intended to clarify compensation arrangements for registered representatives and their associated entities.

Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/7187/all-info